First it was layoffs at EA Blackbox, now word from Kotaku is that Disney Interactive Studios will be laying off as many as 35 of their staff from their Vancouver-based Propaganda Games studio. This surely has to be one of the toughest weeks in Vancouver gaming industry in some time.Steve Wadsworth, President of the Walt Disney Internet Group told Kotaku:
"In response to this challenging business environment, we have examined ways in which we might be able to work more efficiently. We have taken measures to control costs by freezing most open positions, deferring some capital projects, reducing support from third parties, taking significant reductions in travel and entertainment expenses and eliminating other activities. The elimination of existing positions that we communicated today was a necessary step that we had hoped to avoid."There are rumours that the layed off staff were let go after Disney quietly cancelled the production of Turok 2, a game long thought to be in development but has never been formally announced.