Disney Lays Off 250 Employees in Consumer Products and Interactive Media
The conglomerate shut down a studio that was making Marvel mobile games.
In an ongoing effort to boost the financial performance at an underperforming and restructured segment, Disney on Wednesday laid off another 250 people in its recently combined consumer products and digital division.
The layoffs amount to 5 percent of the staff at the segment now known as Disney Consumer Products and Interactive Media.
The cuts on Wednesday follow layoffs of 300 four months ago when Disney ditched its once-popular Infinity, a toy-video game hybrid that competed with a similar product from Activision Blizzard. Also, Disney recently laid off 30 people at Maker Studios, which makes digital videos.
Many of the layoffs that a Disney spokesman confirmed Wednesday occurred in Bellevue, Wash., where a studio that was supporting Marvel: Avenger's Alliance, a mobile game franchise, was shut down Wednesday.
Further layoffs were at consumer products in Glendale, Calif., a result of redundancies caused by Disney combining that segment with its interactive assets last year.
Disney has stopped making console games and is now licensing its content to outside game makers. While the conglomerate still makes some mobile games, it is headed toward a licensing model there, as well.
In the most recent quarter, Disney Consumer Products and Interactive Media, the smallest of its four segments, reported a 1 percent year-over-year decline in revenue and 7 percent decline in operating income. It was the only segment to show a decline in both metrics.