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Disney Interactive lays off 700 employees, or 26 percent of game division

  • Posted byby Dean Takahashi
  • Updated
  • 1 min

Disney Interactive is cutting 700 jobs, or 26 percent of its work force, as the company tries to make its game and Internet division more profitable.

The cuts are expected to hit Disney’s Playdom social games group the hardest. Disney bought Playdom for $563 million-plus in 2010 when the Facebook gaming craze was at its peak.

Disney also invested heavily in its toy-game hybrid, Disney Infinity, which has been popular but isn’t as big a hit as Activision’s Skylanders franchise, which pioneered the toy-game market.

“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,” the company said in a statement. “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.”

The New York Times first reported the layoffs, and a Disney representative confirmed it.

Disney Interactive also runs Disney.com and makes mobile games, like “Where’s My Water?” and Temple Run: Oz.

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Written by

Dean Takahashi

Dean Takahashi is editorial director for GamesBeat at VentureBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.