Disney Interactive has confirmed that it has laid off around 700 employees, about a quarter of its entire workforce.
“Disney Interactive has consolidated several lines of business as part of an effort to focus the division on a streamlined suite of high quality digital products,” a Disney spokesperson said. “As a result of this restructuring, we have undergone a reduction in workforce. These actions were difficult but necessary given our long-term strategy focused on sustainable profitability and innovation.”
The New York Times reports that Playdom was most affected by the layoffs, a division that currently has a focus on free online games. “We’re not exiting any businesses, and we will pursue licensing partnerships in which we retain a lot of creative input,” Disney Interactive president James A. Pitaro told the Times, in part. “But this is a doubling down on mobile and an effort to focus much more intently on a core set of priorities.”