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Major staff cuts at Disney Interactive

Leah Zanolla | Posted: Mar 8, 2014 | Updated: Oct 19, 2014 - 9:25:27 AM
Disney Interactive has laid off 26 percent of its employees, following more losses in its gaming and web division.

The 700 employee cut comes as Disney reorganizes the division, combining mobile games, which have done well, with the social games, which have not.

Disney also said that they will be outsourcing much of their game development and will be cutting in half their annual output.

Additionally, Disney is reworking the advertising on Disney.com and related websites, cashing in on increased traffic since a 2012 redesign.

The Disney Interactive division includes video games, mobile gaming, social gaming and much of Disney's internet presence.