Disney confirms Utah studio layoffs

Disney has confirmed that between 15 and 20 staff were made redundant at its Utah-based Avalanche studio last week, with an estimated 170 staff remaining.

The studio was behind both Cars 2 and Toy Story 3, Chicken Little, Meet the Robinsons, Hannah Montana Spotlight World Tour and Bolt, with an anonymous source tellingGamasutra that, "Disney has been on the losing end for a while, supposedly."

Disney confirmed the layoffs in a brief statement to press, saying that "Avalanche Software has completed a restructuring that resulted in the reduction of a small number of positions."

Last month, parent company Disney Interactive Studios announced increased losses of $86 million for its third fiscal quarter.