Only source at the moment is a NeoGAF mod making a thread on it: http://www.neogaf.com/forum/showthread.php?t=1295545

To add some credibility to the rumor, United Front Games' SMASH+GRAB can no longer be bought on Steam http://store.steampowered.com/app/412720/

From a Video Game Producer at United Front Games:

Currently mourning the best job I've ever had, and the most wonderful team I've ever worked with.
The end of a great era.
Goodbye, UFG.

— Jen Timms (@Scarlettjen) October 18, 2016

Oh man, I hope this isn't true. Really sad for the studio if they lose their jobs and I thought Sleeping Dogs did well. Although it has been a while since they released a game I believe.

That sucks, I very much liked this studio.

I really loved ModNation Racers, every single big event such as E3 and Gamescom I was secretly hoping for a ModNation Racers 2 or a PlayStation themed kart racing game from them, sucks to see them go :(

When a game that sells 1.75 Million units is considered a failure, we have an issue with development costs to expectation ratio. That's why I really hate AAA development. You could pour millions into a game, it sells decently, but it's still a financial failure.

Definitely rethinking my career path about now.

Talented developers, I thought Sleeping Dogs didn't get it's just due. I hope this isn't true.

.

That sucks. I had really hoped they would make a Modnation Racers 2 as well since the first was one of my favorite games.

Currently mourning the best job I've ever had, and the most wonderful team I've ever worked with.
The end of a great era.
Goodbye, UFG.

— Jen Timms (@Scarlettjen) October 18, 2016

Their bad work with Halo: The Master Chief Collection. I think they diserve that.