Disney Cuts 700 Jobs

Disney has confirmed that it is cutting 700 jobs, or 26 percent of its worldwide workforce according to reports in Variety and the New York Times. A good number of the cuts will hit Disney’s Playdom social games group. Disney bought Playdom for over $563 million in 2010, but the division has struggled ever since to create anything viable in the social and mobile gaming space.

“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.”

Variety reports that Disney will shut down its blog site for moms (BabyZone) and another blog about food and crafts (Spoonful). It will also shut down a number of floundering Playdom social games, including Sorority Life.

Source: GamesBeat

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