Disney Interactive to lay off several hundred people

By Kyle Johnson,

The Walt Disney Co.'s Disney Interactive division, which focuses on video games will reportedly lay off several hundred people.

The Wall Street Journal cites sources involved with the company about the impending layoffs.

The division, which employs about 3,000 people, has never been profitable and has struggled despite sales for new game Disney Infinity, which is both a video game and a toy line - much in the way of Skylanders.

Disney Interactive already is dealing with a change at the top of the division with only one at the head of the company, Jimmy Pitaro, after co-president John Pleasants was forced out of the company.

The majority of the cuts will likely come from Playdom, which constantly loses money and was originally purchased by the Walt Disney Co. for $563 million.

According to The Hollywood Reporter, Interactive did increase revenue somewhat up 25 percent to $1.1 billion. But, the division operated at a loss of $87 million, which Walt Disney CEO Bob Iger wants to reverse, a point he has previously made known.

The division previously had layoffs of 300 in 2011 and 50 the following year. Disney previously closed Junction Point Studios and had massive layoffs for LucasArts. The latter company now only licenses its video game properties.

image: Amazon

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