Kotaku reports layoffs at Disney Interactive Studios, a story initially characterized as a rumor that has now been confirmed. The quote they got from Disney unsurprisingly blames these uncertain economic times for the cuts, saying: "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." Some of the cuts are said to be at Propaganda Games prompting the cancellation of Turok 2, a project that's never been officially announced. A follow-up on GameDaily sets the number of jobs lost at 30, significantly lower than the first report. They also offer a vague quote about Turok indicating Disney retains the rights to the franchise, and a less vague statement that Propaganda remains a two-team studio working on two separate unannounced projects.