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

News organizations sue for access to possible Michael Brown juvenile records
Lingering questions about Michael Brown could be answered Wednesday as two news organizations seek the release of any possible juvenile records for the unarmed 18-year-old who was killed by a Missouri police officer last month.

Detroit-area man who killed woman on porch to receive sentence for second-degree murder
A suburban Detroit man who shot an unarmed woman on his porch could come face-to-face with her parents as he receives his sentence for second-degree murder.

Teen due for sentencing in 1 World Trade Center climb; he's promised community service
A teenager who sneaked to the top of the 1 World Trade Center tower is set to be sentenced to community service for a climb that fueled questions about security at the nation's tallest building.

Media lawsuits seek any juvenile records of 18-year-old Ferguson police shooting victim
Lingering questions about Michael Brown could be answered Wednesday as two news organizations seek the release of any possible juvenile records for the unarmed 18-year-old who was killed by a Missouri police officer last month.

California regulatory judges recommend $1.4B penalty to PG&E in 2010 pipeline explosion
California regulatory judges recommended a $1.4 billion penalty on Tuesday -- the largest safety-related levy ever against a public utility in the state -- for a fiery 2010 gas pipeline explosion that killed eight people in a suburban San Francisco neighborhood.

Halliburton reaches tentative $1B Gulf oil spill settlement
Halliburton's agreement to pay more than $1 billion to settle numerous claims involving the 2010 BP Gulf of Mexico oil spill could be a way for the company and victims of the spill to avoid years of costly litigation -- if all the pieces fall into place.

Police: Man killed 2 security guards and stepfather; wounded officer before killing self
South Carolina authorities say a gunman killed two security guards and his stepfather and wounded a police officer before fatally shooting himself in the head.

On Obama's order, 350 more troops assigned to protect US Embassy in Baghdad in noncombat role
The U.S. is adding 350 more troops to help protect the American Embassy in Baghdad and its support facilities in the capital, raising the number of U.S. forces in the country to over 1,000, officials said Tuesday.

1st Air Force instructor convicted in sweeping military sex scandal dies in prison
The first Air Force instructor convicted of rape in a sex scandal at one of the nation's busiest military training centers has died in prison.

Green preschools teach kids composting, recycling while getting back to nature
A new Oklahoma City preschool is staying away from plastic toys, serving only vegan and gluten-free food, and focusing on teaching children early about living a healthy lifestyle.

News at Ten Stories

Advertise with us!
IE6 Float Fix