Disney confirms layoffs at Cars 2 developer

Up to 20 staff have been made redundant at Disney's Utah studio, where Cars 2 was developed.

Gamasutra reports Disney made the redundancies on September 1, with between 15 and 20 staff let go.

A source told the site "budget issues" caused the lay-offs, which leave a team of around 170.

"Avalanche Software has completed a restructuring that resulted in the reduction of a small number of positions," Disney confirmed.

The Salt Lake City-based Avalanche Software - no relation to the Just Cause and Renegade Ops developer - was also behind the Toy Story 3, Bolt and Chicken Little games. It was acquired by Disney in 2005.

The job cuts are just the latest casualties of Disney Interactive's ongoing restructuring into a digitally-focused publisher, including rumoured cuts at Junction Point and closure of Propaganda.

Thanks, EDGE.