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 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.