Disney Laying Off 700 Workers from Interactive Unit

Disney Laying Off 700 Workers from Interactive Unit
Patrick T. Fallon/Bloomberg via Getty ImagesDisney Interactive Studios is the publisher of Disney Infinity, an action-adventure game compatible with several gaming consoles.
LOS ANGELES -- Disney is laying off 700 people from the interactive unit that makes video games and operates websites, about a quarter of the workforce in the division.

A Walt Disney (DIS) spokesman confirmed the layoffs Thursday.

The move narrows the company's focus on mobile and social games that use key Disney characters. Some games that Disney acquired when it bought social game maker Playdom in 2010 for $563 million, such as Sorority Life, will be discontinued.

It is also discontinuing one-time hits, such as music play-along game, Tap Tap Revenge.

Disney Interactive had long been a money-losing unit and last month posted only its third profitable quarter since results began being broken out in 2008,
thanks in part to its Disney Infinity console game, which Disney will keep supporting.

The company shuffled the executive ranks at Disney Interactive in November. Co-president John Pleasants stepped down, leaving co-president Jimmy Pitaro with responsibility for the division.

In a statement Thursday, Disney said the restructuring was "difficult but necessary given our long-term strategy focused on sustainable profitability and innovation."

Shares of the Burbank, Calif., company added 37 cents to $83.05 in afternoon trading. Earlier in trading shares touched $83.42, an all-time high.


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Dan Daily

So, laying off 700 people only raises your stock price 37 cents? Somehow I don't think those 700 would think it was worth it.

March 10 2014 at 7:08 AM Report abuse rate up rate down Reply
1 reply to Dan Daily's comment
savannahswithgod

If it only raised it one cent Disney and the Stock Market would think it was worth it.

March 10 2014 at 7:18 AM Report abuse rate up rate down Reply
nasknit

HOW about that Recovery?

March 10 2014 at 3:42 AM Report abuse rate up rate down Reply
1 reply to nasknit's comment
savannahswithgod

Your spelling Extinction wrong. In the Free Enterprise system all along. Who would of thunk?

March 10 2014 at 7:18 AM Report abuse rate up rate down Reply
madfam004

Dysney's choice of employees have reached a new bottom. It used to be the cream of the crop that got selected and now, not so much.

March 10 2014 at 1:57 AM Report abuse +1 rate up rate down Reply
chaparita0728

Oh I can just hear the bible-thumping holy rollers all the way to Sarah Palin's porch. They so want to credit this to Disney's correct stand on defunding the boy scouts.

March 10 2014 at 1:24 AM Report abuse -2 rate up rate down Reply
petpetdon

None of the video game makers are making any money. They buy each other up and start losing money from the start. Disney has out priced it's theme parks and the average family can't afford to go there. Walt is turning over in his grave watching what idiots have done to the Disney franchise.

March 10 2014 at 12:13 AM Report abuse rate up rate down Reply
2 replies to petpetdon's comment
savannahswithgod

Send me your E-mail address and I will send you my mailing address, you can send a scan disk thingey, I will put you Panzer General 2, morphed version on it and my 9 campaigns I created for that. Cost to you, the postage for it to you. Got to have XP probably to get it to play. Tricky on systems of today. Over 400 scenario's which most take about an hour to play. Keep you busy all year if you like that type of game. And comes with the editor so you can change the game, make your own campaigns. It's for the Love of the game, creativity. Not money. Also I got 30 cats. The Lord made my pillow meow once upon a time when I was talking to him about them, as giving a few a decent life.

March 10 2014 at 7:23 AM Report abuse rate up rate down Reply
tsr5112

You mean you don't want to pay about$100. a head just so you can go on the "Stand in line all day" ride? You must be a not know what pure joy is!

March 10 2014 at 7:57 AM Report abuse rate up rate down Reply
MICHAEL

Disney better take it easy on the theme park prices. I love Disney but God the prices are getting ridiculous. $105 dollars for a 1 day ticket? Disney better remember this, if people don't show, the cash won't flow.

March 09 2014 at 10:53 PM Report abuse +1 rate up rate down Reply
2 replies to MICHAEL's comment
Cindy

Possibly correct, but given that the prices have gone up twice this year and part attendance continues to rise I think the cash is flowing quite well. They do seem to be pricing the average family out of the parks.... but then again try going to a football game or a concert and you may shell out just as much cash.

March 09 2014 at 11:28 PM Report abuse +1 rate up rate down Reply
chaparita0728

Well, yes it is expensive. However, do you go to the movies? $10 or more for about 90 minutes of entertainment. Compare that to the many hours you can spend at the Happiest Place on Earth. Maybe 10 years from now that price will sound like a bargain. After all, when I went to the movies as a child, it was 10-15 cents per head.

March 10 2014 at 1:27 AM Report abuse +1 rate up rate down Reply
Stephen

One of these days...the Magic Kingdom is going to go the way of the dinosaurs. Extinct.

March 09 2014 at 10:13 PM Report abuse -1 rate up rate down Reply
gracecfl

Earth to MALT. Oars in the water? Sounds like you don't even own a boat! What does Obamacare have to do with Disney? Oh that's right, you are off your meds but that's still no excuse for being a MORON!

March 09 2014 at 9:19 PM Report abuse -2 rate up rate down Reply
1 reply to gracecfl's comment
savannahswithgod

I imagine a lot will be off their meds with Obamacare or any other insurance if it is not generic. No help for the medical field. Obamacare is to make sure it stays afloat a little longer and everyone isn't dying in the street when we get out to vote in this great land.

March 10 2014 at 7:26 AM Report abuse rate up rate down Reply
Isatie

WHERE IS/WAS EBBETS FIELD

March 09 2014 at 8:34 PM Report abuse rate up rate down Reply
R

...and I bet most of those laid off voted for obummer. How's he treating you know, libs?

March 09 2014 at 8:09 PM Report abuse +5 rate up rate down Reply
1 reply to R's comment
gracecfl

What does Disney's wasting of over $1 billion have to do with libs, Obama or anyone who voted for him? Funny that Playdom which was bought out for over $700 million, all of the guys who run that company voted for Rombot! Oh that's right those who voted for Romney don't lose their jobs? How's your stupidity and lack of knowledge treating you MORON?

March 09 2014 at 9:15 PM Report abuse -4 rate up rate down Reply