Disney Interactive has confirmed that it has axed a number of positions at its Disney Interactive Studios division.
Though the numbers remain unclassified, it is rumoured that as many as half of the 700 employees have been made redundant.
"As part of setting a strategic direction for future success in the digital media space, the Disney Interactive Media Group today began a restructuring process," Disney told Variety.
It is also being claimed that the losses have hit Warren Spector's studio Junction Point, whose recent release Epic Mickey was one of Disney Interactive's few hits.
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