Disney slashed about 700 jobs, about 25 percent...

Disney slashed about 700 jobs, about 25 percent of its interactive game division, as part of a restructuring, the company said Friday. Disney Interactive “consolidated several lines of business as part of an effort to focus the division on a streamlined suite of high quality digital products,” a spokesman said. “These actions were difficult but necessary given our long-term strategy focused on sustainable profitability and innovation.” Playdom, which makes social games, will continue to operate as Playdom, but Disney Interactive’s social and mobile games businesses will now operate under one leader, said the spokesman, who declined to name that leader. “No action” was being made with the Disney Infinity game and staffing, he said. The company “will continue to invest in and grow” that business, he said. “We will focus on priority projects, and this includes console games,” but it “will not be developing console games in-house, outside of” Disney Infinity, anymore, he said. “We will instead pursue licensing partnerships where applicable,” he said. The cuts weren’t a surprise. Disney had restructuring charges of $1 million related to the interactive division in Q1 ended Dec. 28, it said in a 10-Q SEC filing. The company declined to say then what the charges were for. The restructuring charge and comments made by Disney CEO Robert Iger on an earnings call pointed to significant changes being made in the company’s game division to increase profitability. “You'll see more licensing rather than publishing on the console side” of the game business, “except for” Disney Infinity, he said.