Disney has confirmed that it is revamping its electronic gaming area. Disney Interactive, responsible for the games that carry the company’s brand, will lay off 700 people, or 26% of the employees in the area.
In an effort to make its gaming and internet area more profitable, the company is expected to cut jobs mainly on social games created by Playdom, a company bought by Disney in 2010, in a deal worth about $ 563 million. At the time, Facebook games were on the rise.
The company also invested heavily in the Disney Infinity game, which mixes the interactive game with a series of toys sold separately that can help with the game. The idea was to emulate Activision’s success with the Skylanders franchise, but there was little success.
“As a result of a restructuring, we experienced a reduction in the workforce. This action was difficult but necessary for our long-term strategy with a focus on sustainable profitability and innovation,” says the company in a statement.
Disney Interactive is also responsible for developing the Disney.com website and mobile games like “Where’s My Water” and “Temple Run: Oz”.