The Walt Disney Co.'s Disney Interactive division, which focuses on videos 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 toys.
Disney Interactive already is dealing 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 company 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.
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 video game properties.
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