Warren Spector's Junction Point Studios has been hit with layoffs following the release of its latest title, Wii-exclusive Epic Mickey.
According to a report by CNBC, up to half of the 700 members of staff at Disney Interactive Studios have been affected - the latest move by the entertainment company as it shifts away from the traditional console videogame business.
A statement issued to Variety did not clarify numbers but confirmed Disney was making cuts.
"As part of setting a strategic direction for future success in the digital media space, the Disney Interactive Media Group today began a restructuring process."
Last week Disney closed Turok developer Propaganda Games after completion of the latest Tron game and the cancellation last year of a Pirates of the Caribbean title.
The entertainment company said in its last earnings call that it was investing less in the console space as it migrated to digital formats, following another full-year loss for the games division. Playdom exec John Pleasants was recently appointed co-president of the games segment last year to oversee the changes.
Disney's UK development team, Black Rock Studios, recently finished work on racing title Split/Second.
GamesIndustry.biz has requested further information from Disney.