Disney Interactive lays off nearly 700 employees

By Kyle Johnson,

Disney Interactive has announced cuts of nearly 700 employees, which is much higher than early reports in February had suggested would be coming.

Disney Interactive is the video game division of the Walt Disney Corp. and it has been struggling with profits for awhile, before the recent success of Disney Infinity games and figures. The subsidiary lost about $200 million between 2008 and 2012. A shakeup was coming, but the number was expected to be only around 200 layoffs.

Disney Interactive had a power transfer late last year, which saw co-president John Pleasants forced out and Jimmy Pitaro taking sole control at the top.

Now in March the layoffs have finally happened the Los Angeles Times reports. With about 700 people losing their jobs, the subsidiary has cut about 26 percent of its workforce.

Disney Interactive released a statement saying it "has consolidated several lines of business in an effort to focus the division on a streamlined suite of high quality digital products."

Despite the shakeup, things do seem to be looking up for Interactive as operating income in the first fiscal quarter is up from $9 million to $55 million. Revenue has also improved, with Disney Interactive riding Infinity to a 38 percent increase to $403 million.

image courtesy of Amazon

 
Trending Across the Web
 

Join Our Newsletter

Popular Threads