This morning a blurb in the Internet Movie Database ran thus-

John Lasseter and Ed Catmull are planning to return the Walt Disney Co.'s studios in Burbank to its roots as a "traditional" (hand-drawn) animation company exclusively, while Pixar will continue to turn out computer-animated (CG) features, Disney watcher Jim Hill reported on his website www.jimhillmedia.com today (Tuesday). In doing so, Lasseter, the chief creative officer for Disney Animation, and Catmull, the unit's president, will be reversing Disney's efforts over the past three years to, in Hill's words, "retrain that studio's staff as well as to change Disney Feature Animation into a state-of-the-art CG operation." Hill observed that the plan has not yet been "entirely embraced" by Disney CEO Robert Iger. One result of the about-face, Hill noted, has been the cancellation of Disney's plans to produce the computer-animated American Dog, a movie conceived and supervised by Chris Sanders, who ironically was responsible for Disney's last big hand-drawn hit, Lilo and Stitch.
- IMDB Dec 20th 2006

Jim Hill is a pretty reliable source, he was one of the first to break the Pixar-Disney marriage story last year.

The rumors on the future of the MouseHouse continue to swirl, and no one is more confused than its occupants. Some say things are great, while others are concerned. A Disney shorts program was begun, followed by 130 layoffs of CGI personnel. We'll see. It shows that we are living in historic times for animation. When I was completing my book I had to keep recalling the galleys to add new events as they occurred. So stay tooned...