Kotaku is reporting that Disney have laid off staff in the Vancouver Studio, Propaganda. That’s the team working on Pirates of the Caribbean:  Armada of the Damned and Tron.

It seems the PotC game is axed, along with about 100 employees.

"Disney Interactive Studios confirms the cancellation of the Pirates of the Caribbean: Armada of the Damned videogame which was scheduled to be released in 2011," said Angela Emery, Disney Interactive Studios’ vice president of communication. "As a result of this decision, Disney Interactive Studios completed a restructuring of Propaganda Games, its Vancouver, BC internal studio, affecting one of the studio’s two development teams."

Tron: Evolution is still on track for a year end showing and there are still plans to support it with DLC. It’s a shame about the PotC game but it’s good to see that Tron survived.