Climax's remaining teams are its Handheld studio in Kingston, London and its Portsmouth, UK HQ.
In September 2006, the company sold its Brighton-based Racing studio to Disney Interactive.
Climax was not available for comment as we went to press, but the reported closure of the Santa Monica office, relayed to Develop by a member of its outgoing staff, is not that great a surprise.
The company had announced shortly after the Racing sale to Disney that it was restructuring and returning its focus to UK development, paring down its Californian operation to just 14 people at the Santa Monica office.
And speaking with Develop just days later, CEO Karl Jeffery said: "Take stock of what we've got in the UK and it's incredible. The UK is a far more important development location than all of California.