In April 2015, it was revealed that Disney Interactive had 28 members of Club Penguin's Kelowna headquarters due to the game's declining popularity. The company's UK office in Brighton was shut down around April 17, 2015. Some employees in the office were also let go. Disney Interactive stated to Castanet about the layoffs: "Disney Interactive continually looks to find ways to create efficiencies and streamline our operations. As part of this ongoing process, we are consolidating a small number of teams and are undergoing a targeted reduction in workforce."
On September 2, 2015, Club Penguin closed down the and versions of the site. A spin-off mobile app, Puffle Wild, was removed from the and the same day in order to allow Disney Interactive to focus on Club Penguin. On January 11, 2016, the Sled Racer and SoundStudio apps (the former being an original game and the latter being a of a game on the website) followed suit. 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 Penguinexperience; this involved the layoffs of 30 Disney Studios Canada staff.
On January 30, 2017, Club Penguin announced that the current game would be discontinued on March 29, 2017, to make way for its successor, Club Penguin Island. Membership payments for the original game were no longer accepted as of January 31, 2017, with paid members slated to receive email about membership and refunds.
A popular competitive sport began in the final weeks of Club Penguin, in which players attempted speedruns to see how fast they could get banned from the site; the fastest records were .
Days before the shut down, Club Penguin announced that on the final day of the game's operation, all users would be given a free membership until the servers were disconnected.
On March 30, 2017, at 12:01:39 AM (7:01 AM UTC), Club Penguin's servers were officially shut down.
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