Disney Interactive Layoffs Could Come This Week

by Burke Speaker | February 4, 2014 8:55 am

The Walt Disney Company (DIS[1]) 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 interactive, DIS, Disney stock, DIS stock[2]The 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[3]):

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.

Endnotes:

  1. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  2. [Image]: https://investorplace.com/wp-content/uploads/2011/01/disney.jpg
  3. via the LA Times: http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-disney-interactive-expected-to-begin-layoffs-20140203,0,4272150.story#axzz2sLiUVH7w

Source URL: https://investorplace.com/2014/02/disney-interactive-layoffs-dis-stock/