Disney Interactive Layoffs Could Come This Week

Disney division had been losing millions each year

   

Disney Interactive Layoffs Could Come This Week

The Walt Disney Company (DIS) branch for video games and digital media known as Disney Interactive is set to begin layoffs this week — due to its long financial struggles.

disney Disney Interactive Layoffs Could Come This WeekThe Wall Street Journal reported that there couple be hundreds of Disney Interactive layoffs.

Disney has so far declined to comment.

Disney Interactive has lost more than $200 million a year from 2008 and 2012, and the expected layoffs come after a series of cutbacks that the division has already instituted (via the LA Times):

In January 2013, Disney Interactive cut 50 jobs and closed Austin, Texas-based Junction Point Studios, the developer responsible for the “Epic Mickey” titles. In January 2011, the company shut down Propaganda Games, the development studio responsible for the “Tron: Evolution” video game, and laid off about 200 people.

The division’s struggles continued as it dropped its co-president in November.

The LA Times reported that Robert A. Iger, Disney’s chairman and chief executive, told analysts last year that “profitability at Disney Interactive has been a goal of ours in 2013.”

Still, the division lost $87 million in FY 2013.

DIS stock is down 8% year to date, but up 1% pre-market today.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/disney-interactive-layoffs-dis-stock/.

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