”Avalanche Software has completed a restructuring that resulted in the reduction of a small number of positions,” a spokesperson told Gamasutra.
However, anonymous insiders have reported that actual jobs were cut, and that around 170 employees now remain at Avalanche.
Industry sources state that Disney is moving away from developing AAA games, having fired staff from Propaganda Games (Tron: Evolution) and Junction Point (Epic Mickey). Split/Second developer Black Rock had also been dissolved by Disney.
The cutback is the latest move in Disney’s sweeping reorganisation as it treads away from the retail triple-A games model.
Avalanche Studios are still fine and dandy however, since the Just Cause developer is an independent company.