Report: Disney Interactive Lays Off Nearly Half Its Employees
Disney Interactive Studios, the gaming branch of Walt Disney, let go of a significant portion of its department on Monday.
Although the company has not yet announced the mass layoff or how many were affected by it, sources close to the situation told CNBC that the nearly half of the studio’s 700 employees were cut.
Since dropping $763 million to purchase online game company Playdom in July 2010, Disney’s interactive media division, which publishes and distributes video games, mobile content and websites, has undergone several major changes to account for financial losses.
Several Disney Interactive executives have exited in the past few months, including president Steve Wadsworth and GM Graham Hopper, who spent eight years building Disney’s presence in the gaming industry.
Earlier this month, Disney shut down its Vancouver production unit, Propaganda Games. The closure affected at least 70 jobs and resulted in the cancellation of “Pirates of the Caribbean: Armada of the Damned,” a million-dollar project that had been near completion.