Disney Layoffs

John Pleasant presenting Disney Infinity before the recent layoff.

articles.latimes.com

John Pleasant presenting “Disney Infinity” before the recent layoff.

The successful and well-known company, Disney, is going through a rough patch when it comes to their video games and digital media daughter company, which has taken a plummet losing an estimated $200 million between 2008 and 2012. This is leading to layoffs for this section of Disney.

An anonymous source told the Washington Post that the Disney Interactive layoffs could involve “several hundred people, “ Disney employs 3,000 people in this department. Another source says that it’s due to Playdom, a section that has games on social media websites, like Facebook. Disney purchased this in 2010 for $563 million, but has struggled since.

The layoffs haven’t just been for the bottom of the ladder, co-President, John Pleasants got laid off this past November. This cut was made despite the successful launch of “Disney Infinity,” selling more than three million copies. Disney’s quarterly earning reports have rarely been positive.

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.” The division lost $87 million for its fiscal 2013, which ended in September.

Other cuts and firings due to unsuccessful developing game launches were made in January of 2013 and in 2011. The announcement of the layoffs is expected after Disney Interactive’s quarterly earnings report on Wednesday.