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Disney Cuts One-Quarter Of Game And Internet Division Staff
Following reports in early February of impending Disney Interactive layoffs, the company has let go of approximately 700 employees. The staffing reductions come alongside a 50 percent scale back in annual game releases. The division released over 20 titles in 2013.
Disney previously suggested it would be significantly reducing its in-house development, with a new focus on outside licensing partnerships. “We’re not exiting any businesses, and we will pursue licensing partnerships in which we retain a lot of creative input,” Mr. Pitaro said. “But this is a doubling down on mobile and an effort to focus much more intently on a core set of priorities.”
Disney will be combining its successful mobile operation with the flagging social games endeavors. Disney acquired social gaming company Playdom in 2010 for a reported $563 million. Playdom is the studio behind Marvel Avengers Alliance and Disney Worlds of Wonder.
[Source: New York Times]
Our Take
Disney’s video game endeavors have been struggling over the past couple of years, with Infinity serving as a bright spot. A reorganization and refocusing was inevitable, but the scale of both the pre-layoff staff (approximately 2,700) and the layoffs is staggering. Our thoughts are with those affected.
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