As previously rumored, today Disney announced massive layoffs at its video game and Internet division Disney Interactive. The New York Times reports that around 700 people–or 26 percent of Disney Interactive’s global staff–were laid off today as part of a sweeping reorganization.

“These are large-scale changes as we focus not just on getting to profitability but sustained profitability and scalability,” Disney Interactive president James A. Pitaro said.

The layoffs came as a result of Disney’s move to combine its mobile game business and its social game business. It is not clear if any developers at Disney Infinity creator Avalanche Software were affected by today’s cuts. We’ve reached out for comment.

Disney Infinity has been a bright spot for Disney Interactive, helping the business unit turn a profit for two straight quarters. Disney Infinity has sold more than 3 million Starter Packs to date.