Disney Confirms Cuts, Consolidations

Disney Interactive Studios has confirmed to Kotaku "restructuring" at its Propaganda Games studio in Vancouver, clarifying that about half of the number of employees we reported affected by layoffs were let go.

Exact numbers weren't provided, but we were told that approximately 35 or fewer Propaganda Games staffers were laid off, with two development teams still in development on unnamed projects. As for the rumored cancellation of the developer's Turok sequel, we were told that Disney has never officially announced such a project but that the publisher "still holds the rights from Classic Media" to the intellectual property.

Reps also confirmed reports that its Salt Lake City area developers would be consolidated, citing "efficiencies." The move was pitched as a positive, saying that the combined Avalanche and Fall Line studios would have more prominence on Wii development.