The recession has officially hit publisher Disney Interactive, who confirmed today that just under 30 employees have been let go from Propaganda Games, the studio behind Turok.

The company added that Fall Line Studio – the developer of The Chronicles of Narnia: Prince Caspian – will be rolled into Avalanche Studio. This consolidation will reportedly be responsible for less than 20 layoffs.

Meanwhile, Kotaku reports that the Propaganda layoffs coincided with the cancellation of a sequel to Turok, which wasn’t received well by critics.

Disney Interactive spokesperson Angela Emery would not comment on the rumor, however, but asserted that Propaganda is still a two-team studio with two unannounced projects in the works.