The layoffs announced by Disney Interactive last month have become a reality. Even though Mickey put on his robe and wizard hat to try to make some of that Disney magic happen, it was no match for the impending restructure. As a result, 700 people are now out of work. Initial reports noted that the division's reorganization would include losing several hundred employees, Disney cut over a quarter of its gaming division.
A large number of layoffs came from combining mobile and social development teams. A pair of smaller websites run by Disney Interactive will be shut down and Disney.com will receive yet another redesign. The new site will focus on being a promotional site for theme parks and merchandise rather than a catch-all. Production of new games will also slow down by up to 50 percent as the troubled child of the Disney Empire plans to license out many of its future games. It's possible that the only in-house development will be for Disney Infinity (produced by Avalance Software), which has been confirmed to be unaffected by the division's restructuring.
It's never good to hear about someone losing their job, let alone this many people at once. We here at Neoseeker wish all those affected a speedy turnaround and hope that all 700 will find a new position working on a project they love soon.