Disney Interactive has cut 700 employees, around a quarter of its employees, according to Variety.  The cuts will come primarily from social game-maker Playdom, which Disney acquired in 2010.  One of Playdom’s stronger titles is Marvel: Avengers Alliance, which has 3.9 million Facebook fans.  Disney plans to outsource more social and mobile game production in the future, a significant shift in strategy.

The cuts were bigger than expected; just a few weeks ago a downsizing of “several hundred” employees was expected (see "Marvel, 'Star Wars' Planned for 'Infinity'"). 

The biggest hit at the division is Disney Infinity, which has sold some three million Starters since launch (see "Disney Sold Three Million Starters"), and plans to add Marvel and Star Wars characters to the mix.