Disney Interactive Studios laid off a number of employees last week from its Salt Lake City, Utah-based Avalanche studio, developer of Cars 2: The Video Game, Gamasutra can confirm.
Approximately 15-20 people were let go from the studio on September 1, according to a laid-off worker who requested anonymity. The developer also created the movie tie-in title Toy Story 3.
A Disney rep confirmed the layoffs in a statement: "Avalanche Software has completed a restructuring that resulted in the reduction of a small number of positions."
The layoffs are just the latest at Disney Interactive Studios, as its parent company changes focus from console-based retail games to online and social titles. Reports earlier this year stated that a significant amount of employees within Disney Interactive were let go.
Gamasutra's source estimated the number of remaining Avalanche employees to be around 170, and stated that "budget issues" were to blame. "Disney has been on the losing end for a while, supposedly," the source said.
Disney acquired Avalanche in May 2005. The studio was founded in 1995, merging with Disney's Fall Line team in 2009. Avalanche has developed games based on Disney IP including Chicken Little, Meet the Robinsons, Hannah Montana Spotlight World Tour and Bolt.