Disney Interactive Lays Off 700 Employees

Disney Interactive Lays Off 700 Employees

Disney Interactive Studios logo

Disney Interactive has cut more than a quarter of its global workforce as part of a major restructuring.

Big, unhappy changes have come to Disney Interactive, which cut a whopping 700 employees from its rolls today. The reduction is the result of a decision to combine its mobile and social games businesses, and also to move away from in-house game development: It will continue to support the Disney Infinity franchise and publish Harmonix's Fantasia: Music Evolved, but future console game development will be licensed out to other studios. Layoffs were expected, according to the New York Times, but not to this extent.

"These are large-scale changes as we focus not just on getting to profitability but sustained profitability and scalability," Disney Interactive President James A. Pitaro said. "We're not exiting any businesses, and we will pursue licensing partnerships in which we retain a lot of creative input. But this is a doubling down on mobile and an effort to focus much more intently on a core set of priorities."

Disney Interactive has rung up more than $1 billion in losses over recent years but has turned a profit over the last two quarters largely on the strength of Disney Infinity, a combination video game and toy lineup. Mobile gaming is also doing well, particularly in Japan, but social gaming has tanked since Disney's 2010 purchase of Playdom for $563 million.

Sources: New York Times, Re/Code

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Don't worry folks. The money they save on these employees is probably going towards buying out a new company to assimilate into the Disney company. My money is on Nintendo.

dragongit:
Don't worry folks. The money they save on these employees is probably going towards buying out a new company to assimilate into the Disney company. My money is on Nintendo.

they are screwing themselves up by just focusing on the mobile and social market and i doubt nintendo will want to end up with them after being one of the driving force of the industry for a long time.

before they do that they would rather go third party.

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well, lets hope the guys handling the games departement of disney arent in charge of the movie department too.

dragongit:
Don't worry folks. The money they save on these employees is probably going towards buying out a new company to assimilate into the Disney company. My money is on Nintendo.

And then they can cancel all the games, drop Wii U, fire everybody and sign an exclusive contract with EA for the next twenty years!

As much as I want Nintendo to start publishing on other platforms, that's not how I want it to go down.

This could be good or bad.. though the people losing their jobs bit, especially at that high a tally, is always bad.

Hopefully Disney will use their muscle and ensure tough licensing standards such that their properties end up being developed by people who actually know how to develop games.

This definitely sucks... but I honestly can't think of a single game from these guys off the top of my head.

There's Infinity, but I never really got on the bandwagon with the MMO figurine Skylander thingie.

ThunderCavalier:
This definitely sucks... but I honestly can't think of a single game from these guys off the top of my head.

Well, they are the ones who publish the Kingdom Hearts games and help with them, as well as they own Buena Vista Games which helped with Kingdom Hearts 2 and also made The Nightmare Before Christmas Oogie's Revenge (an underrated gem if you ask me).

OT: Hopefully those people can find new jobs soon.

So where's that games industry idiot who said Nintendo should sell to Disney now? Explain to us how this would be such a good sign.

This comes as a surprise? This is the same thing as Lucasarts. Disney figured out that while the games divisions occasionally make some money its a crap shoot at best and they are erratic. They will keep enough of Disney Interactive alive to manage the licenses and their business side of it. everything else they will contract out to EA. They get a steadier more predictable profit with less risk and less overhead.

I don't think restructuring means what you think it means. Firing people because they don't want to pay them is not restructuring.

 

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