WSMH FOX 66 on Facebook WSMH FOX 66 Twitter WSMH FOX 66 RSS Feed WSMH FOX 66 Mailing List
 

FOX 66 News at Ten

WSMH FOX 66 :: News - News at Ten - Disney layoffs begin with its struggling interactive departments
Disney layoffs begin with its struggling interactive departments



Disney Interactive, the
struggling video game and digital media subsidiary of the Walt Disney Co., is
expected to begin a round of layoffs, according to a source with knowledge of
the matter.



The cuts could come as soon as this week.



Disney Interactive, which lost more than $200 million a year between 2008 and
2012, is in a period of transition. The division parted ways with its
Co-president John Pleasants in November, just months after the successful
launch of its "Disney Infinity" video game.



The Wall Street Journal, which first reported news of the layoffs, said Disney
Interactive would lay off "several hundred people."



The layoffs would follow other recent cuts. 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.



An official at the California Employment Development Department said that
Disney Interactive has not given notice of any layoffs in 2014. (The Worker
Adjustment and Retraining Notification Act requires companies with 75 workers
or more to notify the state, within 60 days of the layoffs, of forthcoming
reductions that eliminate 50 or more jobs.)



A spokeswoman for Disney Interactive declined to comment.



Robert A. Iger, chairman and chief executive of Disney, said on a conference
call with analysts in February 2013 that "profitability at Disney
Interactive has been a goal of ours in 2013." But the division lost $87
million for its fiscal 2013, which ended Sept. 28.



However, the unit swung to a profit in the fourth quarter, posting operating
income of $16 million, an improvement from a $76-million loss from the same quarter
a year earlier.



Burbank-based Disney will report its quarterly financial results on Wednesday.



"Disney Infinity," released in August after a years-long development
process that cost Disney about $100 million, has been a hit for the company.
More than 3 million copies of the action-adventure game have been sold.



The game, available on multiple platforms including PlayStation 3 and Xbox 360,
incorporates physical toys into the game-play. It is sold in a $75 bundle that
includes the game, three figurines and the base that connects the physical toys
to the onscreen action.



The game includes popular characters from the company's films, including Buzz
Lightyear and Woody from Pixar's "Toy Story" franchise and Capt. Jack
Sparrow and Barbossa from the "Pirates of the Caribbean" movie
series.



Though Pleasants was responsible for the launch of "Disney Infinity,"
his departure from the company was announced three months after the game
debuted. Disney Interactive is now run by Pleasants' former co-president, Jimmy
Pitaro.



Before joining the company, Pleasants had served as chief executive of social
media gaming company Playdom Inc., which Disney acquired in 2010 for $563
million.



Shares of Disney closed down $2.62 to $69.99 on Monday.



 



 



Source: Los Angeles Times



Disney layoffs begin with its struggling interactive departments

Wednesday, February 5 2014, 02:12 PM EST

National News Headlines

Woman arrested in Southern California crash that killed 3
Authorities are investigating what led up to a motorist driving through a red light and into nearly a dozen people as they left a church Christmas event in Southern California — leaving three women dead and several other people injured, including children.

Colorado vows to defend pot law against states' challenge
Colorado's top law enforcement official promises to vigorously defend the state's historic law legalizing marijuana after Nebraska and Oklahoma asked the U.S. Supreme Court to declare it unconstitutional, saying the drug is freely flowing into neighboring states.

Dog saves man from burning home
Authorities are crediting a chocolate Labrador with saving the life of a Sacramento man after it alerted him to a fire inside a home that appeared not to have a smoke detector.

Police seek gunman after Central Texas TV meteorologist shot
Authorities were searching for a gunman after a TV meteorologist was shot multiple times during an altercation Wednesday in a Central Texas TV station's parking lot.

Police: Woman, 56, arrested on suspicion of DUI after hitting Christmas concert crowd; 3 dead
Authorities are investigating what led up to a motorist driving through a red light and into nearly a dozen people as they left a church Christmas event in Southern California — leaving three women dead and several other people injured, including children.

Probe: Government lacks disaster-relief coordination, unprepared for handling nuclear attack
A congressional audit says the federal government isn't fully prepared to handle a nuclear terrorist attack or large-scale natural catastrophe.

Public hearing set over restrictive NYC jail dorm for most dangerous Rikers Island inmates
Inmate advocates and others plan to voice their opposition to a proposed 250-bed restrictive housing unit on Rikers Island for violent inmates.

Education Department releases 'framework' for higher-ed rating system
The Education Department released a “framework” Friday for how it will rate more than 7,000 colleges and universities across the nation.

Arson caused Los Angeles apartment blaze
A fire that reduced an unfinished downtown apartment building to a block-long mountain of blackened wood was an act of arson that caused an estimated $20 million to $30 million in damage, the Fire Department announced Thursday.

Infant remains found in California storage unit
Authorities in Northern California are investigating how the bodies of two infants or fetuses ended up in a storage unit.

News at Ten Stories

Advertise with us!
IE6 Float Fix