LOS ANGELES – Disney says it is laying off 700 people from the interactive unit that makes video games and operates websites, about a quarter of the workforce in the division. A Walt Disney Co. spokesman confirmed the layoffs Thursday.
The move narrows the company’s focus on mobile and social games that use key Disney characters. Some games that Disney acquired when it bought social game maker Playdom in 2010 for $563 million, such as Sorority Life, will be discontinued.
It is also discontinuing one-time hits, such as music play-along game, Tap Tap Revenge.
Disney Interactive had long been a money-losing unit and last month posted only its third profitable quarter since results began being broken out in 2008, thanks in part to its Disney Infinity console game, which Disney will keep supporting.