Disney video game arm slashes workforce

Mar 06, 2014
People try out the Disney TRON game at the annual Electronic Entertainment Expo (E3) at the Los Angeles Convention Center on June 16, 2010 in Los Angeles, California

Walt Disney Company on Thursday confirmed that it is cutting about a quarter of the workers at its money-losing video game division.

Disney Interactive will trim 700 employees in what the US entertainment titan described as a "global action" aimed at consolidating several lines of business in an effort to focus on a streamlined suite of digital products.

"As a result of this restructuring, we have undergone a reduction in workforce," Disney Interactive said in an email reply to an AFP inquiry.

"These actions were difficult but necessary given our long-term strategy focused on sustainable profitability and innovation."

Video game studios behind titles for play on consoles are facing increasingly pressure from the popularity of play on smartphones, tablets and personal computers.

In December, Walt Disney Company announced that it tapped Twitter co-founder and chairman Jack Dorsey to join its board of directors.

Disney chief executive Robert Iger at the time said that Dorsey brings with him valuable perspective regarding using the latest technologies and platforms to reach more people.

Dorsey was a co-founder of the social networking site Twitter and is credited with writing the first Tweet in 2006. He is also chief executive of Square, which works on innovations in online payment systems.

Explore further: Disney launches cloud film service for mobile devices

add to favorites email to friend print save as pdf

Related Stories

Disney to buy social-gaming site Playdom

Jul 27, 2010

(AP) -- The Walt Disney Co. is buying online social-gaming company Playdom for $563.2 million, the latest sign the company is becoming a formidable player in the video-game industry.

Disney hopes game character makes it to big screen

Sep 22, 2011

(AP) -- The Walt Disney Co. has used mobile games to promote its movies, but now it's trying something new: launching a cuddly character in a game in the hope he makes it to the big screen someday.

Disney lays off staff at game developer LucasArts

Apr 03, 2013

(AP)—Four months after acquiring "Star Wars" maker Lucasfilm, The Walt Disney Co. is shutting down video game production at subsidiary LucasArts and laying off staff as it focuses on the less-risky, less-expensive path ...

Disney confirms layoffs at game division

Jan 26, 2011

(AP) -- The Walt Disney Co. said Tuesday it is laying off employees and hiring an executive as it revamps its video game division to focus on mobile and social games and away from expensive-to-produce console games.

Recommended for you

Turner channels removed from Dish amid pact spat

13 hours ago

Channels such as Cartoon Network and CNN are no longer part of Dish's programming lineup as a deadline has passed for the satellite TV provider and Turner Broadcasting to renew their distribution agreement.

Verizon reports higher 3Q net income, revenue

14 hours ago

Verizon Communications Inc. on Tuesday reported higher net income and revenue in its third quarter, helped by strong wireless subscriber growth and demand for its high-speed FiOS Internet services.

Amazon, Simon & Schuster sign book retail deal

22 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

User comments : 0