Big layoffs at Disney Interactive
Parent company says it will now focus on digital games
Disney has laid off one-quarter of its global staff in Disney Interactive, confirms Joystiq.
700 job losses points to a change in strategy for the company, which is expected to scale back annual game output by as much as 50 percent.
"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. 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," said the company.
While profits for Disney Interactive rose in Q1 2014 thanks to the success of Disney Infinity, as it reported a 38 percent increase in revenue year-over-year for that period, it also reported losses in Q3 2013 and Q2 2013 to the tune of $58 million and $54 million.