Disney Guts Its Games Division
700 laid off as Disney Interactive as gaming division is cut by a quarter
Disney has decided - post Epic Mickey and Epic Mickey 2's less than stellar sales - to gut its own Interactive (games) division.
We understand that Disney is attempting to place staff who have lost jobs, and the company is playing fair in terms of severance payments.
According to the New York Times, "Disney’s struggling video game and Internet division laid off roughly 700 employees on Thursday, or 26 percent of its global staff, in a major retrenchment that includes a shift in advertising strategy at Disney.com."
The NY Times report also points out that, "Disney Interactive makes up a tiny piece of the Disney empire. The entertainment conglomerate as a whole had $1.84 billion in profit and $12.31 billion in revenue in its most recent quarter; Disney Interactive had operating income of $55 million on revenue of $403 million, according to financial filings.
"But the gaming and web division has been a perpetual money loser, bleeding more than $1.3 billion since 2008, and the restructuring on Thursday was a humbling acknowledgment that, despite the company’s repeated pronouncements that long-term profitability was on the horizon, the unit remains challenged."
Best of luck to everybody! Please feel free to tell us your stories at news@spong.com
We understand that Disney is attempting to place staff who have lost jobs, and the company is playing fair in terms of severance payments.
According to the New York Times, "Disney’s struggling video game and Internet division laid off roughly 700 employees on Thursday, or 26 percent of its global staff, in a major retrenchment that includes a shift in advertising strategy at Disney.com."
The NY Times report also points out that, "Disney Interactive makes up a tiny piece of the Disney empire. The entertainment conglomerate as a whole had $1.84 billion in profit and $12.31 billion in revenue in its most recent quarter; Disney Interactive had operating income of $55 million on revenue of $403 million, according to financial filings.
"But the gaming and web division has been a perpetual money loser, bleeding more than $1.3 billion since 2008, and the restructuring on Thursday was a humbling acknowledgment that, despite the company’s repeated pronouncements that long-term profitability was on the horizon, the unit remains challenged."
Best of luck to everybody! Please feel free to tell us your stories at news@spong.com
Companies:
Disney Interactive
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