Disney's confirmed it's to drop some American staff, namely "less than 20" employees from a consolidation from the firm's Fall Line Studio into Avalanche, according to spokeswoman Angela Emery.
Both outfits are based in Salt Lake City, Utah.
In addition, around 30 staff are to be cut from Vancouver-based Propoganda.
In a note to staff, Disney Internet Group president Steve Wadsworth said, "The elimination of existing positions that we communicated today was a necessary step that we had hoped to avoid.
"In addition to all of these changes, we have also determined that Directors and above will not be receiving merit increases this year. All of these actions are part of a focused effort to ensure we are closely managing the organization through the current economic climate, balancing our need to respond to the current environment with our goal of driving significant long-term growth."