Disney has laid off 700 employees from its gaming and internet division. That's 26% of the division's total global staff.
The gaming and internet division handles smartphone and mobile games, as well as social games like those found on Facebook. With social games falling behind the company has decided to merge the two. It will also develop less games in-house and rely more on licensing external developers going forward. Disney released around 24 games overall in 2013, but it will put out around 50 percent fewer games this year.
“These are large-scale changes as we focus not just on getting to profitability but sustained profitability and scalability,” Disney Interactive President James Pitaro told The New York Times.
“We’re not exiting any businesses, and we will pursue licensing partnerships in which we retain a lot of creative input,” he continued. “But this is a doubling down on mobile and an effort to focus much more intently on a core set of priorities.”
Disney has reportedly suffered $1 billion in losses in recent years but has become profitable again in the last two quarters thanks mainly to Disney Infinity, a game that spans traditional consoles as well as tablets and smartphones.