Disney Interactive Lays Off Around 700 Employees

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  • Disney Interactive Lays Off Around 700 Employees

    About 700 employees, or 26% of its global staff, were laid off from Disney Interactive on Thursday. While layoffs were expected to happen, nobody expected the layoffs to be on this large of a scale.

    The move came after Disney decided to combine two business, mobile gaming and social gaming. As a result of these layoffs and the changed focus, the company will "cut annual game output by as much as 50%." Last year, they released nearly two dozen titles.
    "These are large-scale changes as we focus not just on getting to profitability but sustained profitability and scalability," James A. Pitaro, the president of Disney Interactive.

    "We’re not exiting any businesses, and we will pursue licensing partnerships in which we retain a lot of creative input. But this is a doubling down on mobile and an effort to focus much more intently on a core set of priorities.

    "At the same time we are reducing our focus in some areas, we are making strategic investments in others, and the Japan business is one."

    Disney-branded mobile devices are apparently doing really well there. A game, Tsumu Tsumu, has been downloaded over 8 million times since its release on January 29.

    (via NY Times)

    • K-16
      #1
      K-16 commented
      Editing a comment
      Their Marvel licensed games are also flooding the mobile market as well. They even have competing games from Gree and Mobage that both use Marvel licenses. (I hate Mobage's Marvel War of Heroes though... Designed for pay to win, but only if you know where to spend your money, as 3/4 of the stuff you want to buy is luck-based like Final Fantasy All The Bravest. That and CyGames is a developer that only knows how to break things.)
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