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The original plan was to release Club Penguin in 2010, but since the team had decided to fast-track the project, the first version of Club Penguin went live on October 24, 2005, After Disney's acquisition, Disney Interactive had four MMOs to simultaneously juggle: Toon Town, Pirates of the Caribbean Online, Pixie Hollow, and Club Penguin, with World of Cars set to follow soon.

Lane Merrifield assured Global Toy News at the time that "it’s a lot of worlds to manage, but we have really strong teams." Merrifield's role changed from taking a backseat in daily game design to focusing on overall branding and quality control of the virtual gaming properties.

As part of this ongoing process, we are consolidating a small number of teams and are undergoing a targeted reduction in workforce.” With the closure of Disney Interactive in 2015, Club Penguin side-projects wound down to allow a streamlined effort to focus on the core Club Penguin experience; this involved the layoffs of 30 Disney Studios Canada staff.

Disney Interactive replied to Castanet on the layoffs: “Disney Interactive continually looks to find ways to create efficiencies and streamline our operations.It nostalgically looks back on the game's 12-year history, comments on how far the community has grown, and has an optimistic view on the future for its members.The company's UK office in Brighton was shut down around April 17, 2015.In 2008, the first international office opened in Brighton, England, to personalise the level of moderation and player support.