PORTLAND, Ore. (AP) -- The Portland-based animation studio Laika Entertainment has laid off 65 people as the company owned by Nike chairman Phil Knight halted plans for "Jack and Ben's Animated Adventure."

Barry Cook, the director of Disney's "Mulan," had signed on to direct the computer-generated feature that would have been the studio's second film.

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The studio's first feature, "Coraline," is to be released Feb. 6.

"Coraline" is an adaptation of a children's novel by Neil Gaiman about a girl who enters a parallel world and encounters sinister versions of her parents.

The film features the voices of "Desperate Housewives" star Teri Hatcher and teenage star Dakota Fanning.