It's not a good day at Propaganda Games. The Vancouver-based development studio owned by Disney Interactive is experiencing mass layoffs following the cancellation of one of the studio's two games, the movie-based RPG Pirates of the Caribbean: Armada of the Damned. The game was first announced back in May 2009 and was due for release sometime in 2011 until today's cancellation announcement.

According to Kotaku, as many as 100 people have been let go at Propaganda Games this week. While not stating exact numbers, Disney Interactive did confirm that the company's development teams have been consolidated from two teams to just one. The remaining team members are completing work on the upcoming Tron Evolution which is still scheduled to be released on December 7.