Disney to Cut 200 JobsTuesday, February 4, 2014
Walt Disney Co. will cut 200 jobs from in its interactive division as part of a continuing reorganization, according to media reports.
The Burbank entertainment and media giant is expected to begin the staffing cuts on Wednesday after reporting fiscal first quarter earnings, according to the Wall Street Journal.
The Disney interactive division, with its main offices in Glendale, has struggled in the past few years to develop top-selling console games. A year ago Disney closed its Austin, Texas video game development studio Junction Point as a result of poor sales of its “Epic Mickey 2: The Power of Two” game.
Since then Disney has found at least one winner with “Infinity,” which was released in August and features multiple Disney and Pixar characters. The game produced $16 million in profit for the Interactive division in the fourth quarter ended Sept. 30.
The latest cuts are expected to hit the Playdom.com business, the Wall Street Journal reported. Disney acquired the social media site in 2010.
Disney Interactive made prior staffing cuts in November 2012, January 2011 and March 2011.
Shares of Disney closed Monday down $2.62 or 3.6 percent to $69.99 in trading on the New York Stock Exchange.