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Disney layoffs: Struggling video game division to shed hundreds this week

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Disney layoffs at struggling video game division could number in the hundreds. The layoffs are expected to affect both the interactive and digital media units. According to The Street on Feb. 4, jobs will be shed from social gaming and website areas.

Walt Disney's interactive-media unit is preparing to lay off several hundred people despite a strong launch for its videogame "Infinity," according to people close to the company.

Disney layoffs are thought to begin after the company reports earnings on Wednesday after U.S. market's close. The "Infinity" game sales resulted in a $16 million profit last September, turning around a $76 million loss from the previous year. Disney may have spent $200 million per year on the unit over the past five.

The Disney layoffs will affect some of its 3,000 employees in their interactive unit. The division formerly known as Disney Interactive Media Group and Walt Disney Internet Group includes the company’s websites, and gaming properties. It was initially formed in 1995 as Disney Online. Another high-profile failure was the portal, which was launched in 1998 and shuttered in 2001 resulting $878 million in charges.

What do you think about the Disney layoffs story? Please drop in your comments below.

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