Armada of the Damned canceled, lay-offs hit Propaganda

Disney has canceled production of its action-RPG Pirates of the Caribbean: Armada of the Damned amid lay-offs at Propaganda Studios.

The news was confirmed to Kotaku, with Disney Interactive's Angela Emery stating:

"Disney Interactive Studios confirms the cancellation of the Pirates of the Caribbean: Armada of the Damned video game which was scheduled to be released in 2011.

"As a result of this decision, Disney Interactive Studios completed a restructuring of Propaganda Games, its Vancouver, BC internal studio, affecting one of the studio's two development teams.

"The studio is still in active production of TRON: Evolution, the video game, which will be released on December 7 with additional DLC support following the game's release."

According to sources close to Kotaku, as many as 100 people were let go this week. The remaining team from Pirates were shifted over to out on Tron.

Shame folks are losing their jobs, and it's a shame because Armada of the Damned looked really cool, and we heard from folks who had looked at it that it was coming along nicely.