Los Angeles • Disney 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. According to a source within the studio, none of the layoffs were expected to occur at Disney Interactive's Salt Lake City studio, Avalanche Software, which is currently producing the popular "Disney Infinity" video game. "Infinity" uses popular Disney characters in the game and also involves plastic figurines of the characters that unlock gaming content.
The layoffs narrow 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.