Disney Interactive, the video/digital media subsidiary of entertainment giant Walt Disney Inc., has announced its intention to lay off workers, according to a Los Angeles Times news story published February 4, 2014.
Disney Interactive has not fared well financially. Between 2008 and 2012, the division lost a total of $200 million and has shown only slight progress. There have already been some layoffs at Disney Interactive and even a plant closure last year, but it hasn’t been enough to turn the division around.
On the other hand, Disney Interactive did manage to squeeze through a small profit for the quarter ending September, 2013. But management obviously feels this is too little, too late. The subsidiary has not kept up with expectations and needs some reorganization.
One positive development at Disney Interactive has been Disney Infinity, an action- adventure game. It has performed well, with more than 3 million copies sold. The game is available for PlayStation3 and Xbox 360 and has proven very popular with Disney fans.
No one at Disney has come forward to verify the layoffs at Disney Interactive, but it is all but certain, as the Wall Street Journal and other sources say that a few hundred workers could be let go as soon as this week.
Disney shares have been mixed following the news, moving lower earlier in the trading day then higher in the mid- afternoon.
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