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According to reports Disney have chosen to lay off approximately 30 people (some reports claim 70 people) at Vancouver based Propaganda Games (Turok) and 20 people will loose their jobs at Fall Line Studios as it is incorporated into Avalanche Software. Other Disney studios Junction Point and Black Rock (Pure) are thought to be unaffected by the cut backs.
It is unclear if any projects are affected by the cutbacks, according to Disney representatives Propaganda are still working on two projects while unconfirmed reports point to an unannounced Turok 2 getting the axe. Perhaps we will know more once the dust settles.