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

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

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

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

Alligator kills 28-year-old Texas man during late-night swim
A man has died after an alligator attacked him during a late-night swim at a Southeast Texas marina.

Estate of 'Untouchables' Eliot Ness fights to cash in old stock certificate from Diebold days
A legal fight is brewing in Florida between the estate of "Untouchables" Prohibition agent Eliot Ness and an Ohio company over some long-undiscovered stock that apparently belonged to Ness and may be worth more than $1 million.

No Gender Bias Figured Into What These Franchisees Chose to Do
They used to be in oil and gas; now these guys are into waxing. No, not cars -- women's legs.

Marathon bomber's friend drops appeal on obstruction charges, received 3 1/2-year prison term
A friend of Boston Marathon bomber Dzhokhar Tsarnaev (joh-HAHR' tsahr-NEYE'-ehv) has dropped an appeal of his conviction for obstructing the investigation into the bombing.

Members of Massachusetts country club score 10 holes-in-one in first 2 months of season
Members of a Massachusetts country club are having a remarkable golf season.

How to Set Prices for Your Child-Care Service
Learn to determine pricing that will make you a profit but won't scare away parents.

Police identify armed man who caused panic at a North Carolina mall as a Fort Bragg soldier
Authorities say a Fort Bragg soldier has been charged with creating a panic at a North Carolina mall after appearing there with an assault rifle and other military gear.

Massachusetts grand jury indicts ex-funeral director on additional charges
The former owner of a Massachusetts funeral home accused of improperly caring for dead bodies and embezzling more than $375,000 from clients has been indicted on additional charges.

Vietnam Communist Party chief, gearing up for US visit, expects to host Obama later this year
The powerful head of Vietnam's Communist Party will pay the first visit to the United States next week, and he expects President Barack Obama to make a maiden visit to Vietnam later this year.

Jim Webb Throws His Hat in the Ring for the WH
President Obama spent some time yesterday bragging about the strength of the U.S. economy. At an event in Wisconsin President Obama also attacked Republicans saying they are good people, “It’s just their ideas are bad.” He said the Affordable Care Act is working and is “here to stay.”

There are live events today with Senator Bernie Sanders and Hillary Clinton. We’ll be monitoring for news.

Former Virginia Senator Jim Webb became the latest to jump into the race for the White House. He became the fifth Democrat to announce he’s running in a 2,000 word blog post.

We’ve also learned Republican Wisconsin Governor Scott Walker is now expected to jump into the race on July 21st.

Republicans are lining up to criticize Donald Trump who upset many with his comments about illegal immigrants when he announced for President last week. Jeb Bush and Chris Christie calling out Trump over the comments (which he’s standing by).

News at Ten Stories

Advertise with us!
IE6 Float Fix