Disney Interactive lays off a quarter of its staff

Disney Interactive lays off a quarter of its staff
Erik Johnson

By Erik Johnson

March 7th 2014 at 9:51AM

US publisher argues its 'consolidating' and 'streamlining' its business to focus on high quality digital products

Disney Interactive has laid off more than 25 per cent of its workforce as part of major restructuring, the company has confirmed.

It was reported nearly a month ago that Disney was preparing to layoff “several hundred” employees, and it seems the info was spot on – specifically concerning Playdom.

The New York Times reports that of the approximately 700 affected, Playdom was hit the hardest. The division is responsible for free online titles, such as Marvel Avengers Alliance and Pirates of the Caribbean: Isles of War.

"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 confirmed to Polygon.

"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."

Disney Interactive president James A Pitaro told NYT that the company is focusing on mobile and "core" priorities going forward.

"We're not exiting any businesses, and we will pursue licensing partnerships in which we retain a lot of creative input," Pitaro said. "But this is a doubling down on mobile and an effort to focus much more intently on a core set of priorities."

This story was originally published on our sister site, MCV