About 700 employees, or 26% of its global staff, were laid off from Disney Interactive on Thursday. While layoffs were expected to happen, nobody expected the layoffs to be on this large of a scale.

The move came after Disney decided to combine two business, mobile gaming and social gaming. As a result of these layoffs and the changed focus, the company will "cut annual game output by as much as 50%." Last year, they released nearly two dozen titles.

Disney-branded mobile devices are apparently doing really well there. A game, Tsumu Tsumu, has been downloaded over 8 million times since its release on January 29.

(via NY Times)