Disney Interactive Studios has confirmed to Kotaku that as a result of restructuring at its Propaganda Games studio approximately 35 employees have been let go.
According to Kotaku, two development teams are still in development of two unannounced games, although a Disney rep was unable to confirm the future of the Turok franchise. According to Disney a sequel has never been announced, but noted that it still holds the rights to the Turok property.
Disney reps also confirmed that Disney's Salt Lake City area developers will be consolidated, seeing Avalanche Software and Fall Line studios combining with a greater prominence on Wii development.
Steve Wadsworth, president of the Walt Disney Internet Group commented: "As you can imagine, given economic conditions, every industry has been impacted on a global scale. In response to this challenging business environment, we have examined ways in which we might be able to work more efficiently."
He added: "The elimination of existing positions that we communicated today was a necessary step that we had hoped to avoid."