Walt Disney Co said on Thursday that it is cutting jobs in its interactive division, which houses its video game and online properties, and a person with knowledge of the situation said that about 700 jobs would be eliminated.
Disney, which announced the job cuts in a statement, declined to comment on the number of jobs affected.
The 700 jobs cited represents about one quarter of the division's total workforce.
"Disney Interactive has consolidated several lines of business as part of an effort to focus the division on a streamlined suite of high quality digital products," the company said in its statement.
Disney has built an enviable record in producing hit movies but has had a succession of lackluster interactive game products.
The news was first reported by The New York Times on Thursday.