Disney is the latest in a long list of companies planning to pare down its workforce, with cuts and consolidations affecting Disney Interactive Studios. Layoffs are said to have already hit Turok developer Propaganda.
Sources tell us that Vancouver based Propaganda Games is in the process of laying off approximately 70 employees. That reduction in workforce is likely closely tied to the cancellation of Turok 2, a title never officially announced by Disney, but one of two projects that Propaganda was working on, we're told.
Propaganda's second project, which sources opted not to define, is still actively in development.
According to one employee at a DIS subsidiary, the parent company is also planning to consolidate a handful of its studios, including Avalanche Software and the Fall Line studio. Both development houses are responsible for creating games based on Disney properties such as Chicken Little, Hannah Montana and The Chronicles of Narnia.
Both studios are located in Salt Lake City, Utah.
Disney is planning to eliminate jobs outside of its video games business as well, with Reuters reporting that job cuts will hit television networks ABC and ESPN.
Representatives from Disney Interactive Studios did not immediately return phone calls requesting comment or confirmation. [Disney reps have since confirmed and clarified this report.]