The BBC recently moved all children's programming away from BBC One and BBC Two to its digital channels CBBC and CBeebies.
The move is part of director general Mark Thompson's 'Delivering Quality First' proposal, which aims to cut millions from the budget by 2017 and reassess the BBC's output.
Although she felt the move was "inevitable", Wood stated that it was "dismissive of children".
She described the scheduling change as "cynical" and said that it gave a "completely different attitude to the one that scheduled Magic Roundabout before the 5.40pm news".
"Children's shows have just become fodder, and as a practitioner, I feel very sad about that," she told Radio Times.
Wood continued to explain that children's shows are not just watched by young people.
She said: "There is a certain amount of overlooking of the fact that children's programmes do get a wider audience than people are aware of. Just as children's literature does.
"In my long career, I have frequently had letters from older people who have enjoyed my programmes as much as children do. A lot of the reason older people like to watch children's programming is because it is life-enhancing."
However, Horrible Histories author Terry Deary has stated that it doesn't matter where children's programmes are shown.
"It's progress - it doesn't matter at all," he said. "The fact that children's shows have been on BBC One since the war doesn't mean they should continue, and to hang on to them would be a very backward step."
On Wood's use of the word "ghetto" to describe the BBC's actions, he added: "Ghetto is a very emotive word and implies the children's channels are inferior. Not at all. If you're interested in sport, you go to a sport 'ghetto'. If I want to watch history, I'll watch the history channel.
"Putting children's shows on the children's channels is perfectly logical."
BBC Children's director Joe Godwin responded to Wood's comments by stating: "Far from being a 'cynical' move, we're just following where our audience has already gone.
"It's simply not true that we're 'ghettoising' children's programmes - CBBC and CBeebies are the nation's most popular children's television channels and we also know that lots of 'former children' enjoy sitting down with their own kids to watch our programmes."
Popular long-running shows such as Blue Peter and Newsround are now solely shown on the BBC's digital channels.