Disney Interactive have confirmed that "less than 20" people have lost their jobs as Fall Line consolidates into neighbouring Avalanche.
Around 30 more Disney staff has lost positions in Vancouver-based Propaganda Games, rumoured to be tied to the cancellation of Turok 2. Disney "hoped to avoid" the layoffs.
"The elimination of existing positions that we communicated today was a necessary step that we had hoped to avoid," said Disney Internet Group president Steve Wadsworth.
Black Rock, Junction Point and other Disney studios are safe said Angela Emery, Vice President of Communications at Disney Interactive Studios to.
Emery noted that the consolidation of Fall Line into Avalanche gives the studio some "efficiencies" that "puts Wii and Nintendo development at the forefront... giving Avalanche some additional development capacities."
Nintendo Wii is "a very important platform for us, of course."