Disney Interactive Pulls the Plug on 700 Jobs
It’s safe to say the magic just wore off for some 700 Walt Disney Co. (NYSE:DIS) workers. Variety reported Thursday that Disney Interactive is cutting 700 jobs, about 26 percent of its total workforce, on account of the Mouse House’s games and Internet division failing to perform up to profitability standards. Disney’s Playdom group, the division that produces games for social media platforms, will take the brunt of the job layoffs, and a Disney rep said via Variety that the layoffs will occur across the board of the business unit.
Disney is an expert at many things, but it appears that mobile and social games are no longer its forte — a reality that Disney Interactive recognizes as it works to develop “significantly fewer” games in-house. Now, as the company navigates 700 job cuts, it’ll look to outside partners for the development of its new products and games, and Disney will work on restructuring to only maintain the current digital products that are thriving.
The company explained in a statement this week, according to Variety, “Disney Interactive has consolidated several lines of business as part of an effort to focus the division on a streamlined suite of high-quality digital products. As a result of this restructuring, we have undergone a reduction in workforce. These actions were difficult but necessary given our long-term strategy focused on sustainable profitability and innovation.”