CNBC reports that Disney Interactive Studios has laid off as much of half of it 700 employees in its division dedicated to gaming content (both online and console).

We reported last October that Disney had done similar layoffs at its Propaganda Games office in Vancouver and subsequently scrapped the MMORPG Pirates of the Caribbean: Armada of the Damned.

There’s been a lot of shifting of upper-level management as folks like Steve Wadsworth and Graham Hopper announced their departures, while Playdom CEO, John Pleasants was promoted to Wadsworth’s former position of head of Disney Interactive Media Group.

Recent videogame release Disney Epic Mickey for Wii had a very stong debut and continues to be a bestseller, while other titles like TRON: Evolution haven’t done as well as initially hoped for.

Disney’s got a plan, and while it may seem unclear at the moment we have to believe they know what they’re doing.  Disney’s CEO, Bob Iger was quoted as saying “It’s our goal not only to be profitable, but obviously to get there by shifting our investment.”