Disney video game arm slashes workforce

March 6, 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 to buy social-gaming site Playdom

Related Stories

Disney to buy social-gaming site Playdom

July 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 confirms layoffs at game division

January 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.

Disney hopes game character makes it to big screen

September 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

April 3, 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 ...

Recommended for you

Software turns smartphones into tools for medical research

July 27, 2015

Jody Kearns doesn't like to spend time obsessing about her Parkinson's disease. The 56-year-old dietitian from Syracuse, New York, had to give up bicycling because the disorder affected her balance. But she still works, drives ...

Where is solar power headed?

July 22, 2015

Most experts agree that to have a shot at curbing the worst impacts of climate change, we need to extricate our society from fossil fuels and ramp up our use of renewable energy.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.