Walt Disney has laid off around 700 employees – 26 per cent of its global staff – in a sweeping reorganisation of its interactive division.
The overhaul will see the struggling division reduce the number of video games it develops, as well as alter its advertising strategy to focus on the changing mobile market.
While a Disney spokesperson would not confirm the exact number of job losses, insiders have cited that it equals to roughly one quarter of Disney Interactive’s workforce.
Disney’s games and online division has been a money loser for the corporate empire for a number of years, reports Reuters.
“We are trying to consolidate things and focus largely on the mobile platform,” the president of Disney Interactive, Jimmy Pitaro explained.
“The industry is moving very quickly in that direction and we are making that transition.”
The firm will continue to develop games and content for its Disney Infinity platform, a line viewed as a pivotal element in Disney’s efforts to revive the interactive division, but now plans to license most of its games to earn additional revenue.
Image courtesy of Reuters.