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.