Disney Interactive Cuts a Quarter of Their Global Staff

In some sad news—if not surprising news, all things considered—Disney’s Game and Internet Division, also known as Disney Interactive, has laid off almost 700 employees as of today. That’s a 26% reduction of the division’s workforce, despite the improvement in finances after last year’s release of Disney Infinity.

The New York Times reported that Disney Interactive’s strength right now comes from Japanese mobile products and console games, which means internal development is going to merge social games and the successful mobile division, while also adding a focus on external licensing.

From the sounds of things, we’ll see game production cut in half, due to a number of flops from the division last year. (Notably, they did release over 20 games last year, so it should be expected that not every game would be a huge hit.)

James A. Pitaro, president of Disney Interactive, said that “these are large-scale changes as we focus not on just getting to profitability but sustained profitability and scalability. We’re not exiting any businesses … this is a doubling down on mobile … we are reducing our focus in some areas, we are making strategic investments in others, and the Japan business is one.”

We’ll see less output overall from the studio as a result, though those products and lines that have been successful so far will undoubtedly still continue. Best wishes from Nintendo Fire to all those who lost their jobs as a result of the cuts.


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Author: Faith View all posts by
Faith likes games and books and cake and writing and Lara Croft, not necessarily in that order. She also thinks a Skylanders cartoon show is a really, REALLY good idea...

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