Disney Interactive has made cuts to Propaganda Games and Fall Line Studios.
Turok developer Propaganda will lose 30 staff according to GameDaily, not the 70 reported by some blogs. Any chatter of cancelled projects – a sequel to Turok has been mooted – is purely speculation said a spokesperson for the company, as the team remains focused on two projects.
Fall Line Studio is to be consolidated into Avalanche, with the loss of "less than 20" positions. Both studios are based in Salt Lake City, and will be concentrating on development for Wii and DS products.
Positions at Disney's other studios including Black Rock and Junction point are not thought to be affected.
According to internal communication forwarded to Kotaku, other cost cutting measures at Disney include the freezing of new positions, reduction in travel and entertainment expenses, and no pay increases for senior positions.
"The elimination of existing positions that we communicated today was a necessary step that we had hoped to avoid," said the company.
"All of these actions are part of a focused effort to ensure we are closely managing the organisation through the current economic climate, balancing our need to respond to the current environment with our goal of driving significant long-term growth."