Disney is set to close its Brighton-based development studio, Black Rock Studio, who they purchased from Climax in 2006. They were specialists in racing games.
The 40 staff that remained from a previous cull will now be made redundant and the decision came after the studio's next project wasn't given the green light by the publisher.
Black Rock Studio most recently worked on Split/Second, but they had also worked on Pure and the MotoGP franchise in the past. They were founded in 1998.