Disney Interactive ‘preparing to lay off several hundred’ – report

‘Several’ hundred jobs are said to be at risk at Disney Interactive.

Wall Street Journal says the cuts will begin tomorrow, suggesting that a significant number of the 3,000 strong Interactive workforce is under threat.

Disney Interactive president Jimmy Pitaro, who took over from John Pleasants in November, is said to have announced a reorganisation and senior management shuffle recently.

The report claims that Playdom, which was acquired by Disney for $763m in 2010, is particularly under threat, with Pleasants saying it was "still challenged" and that he "could have been maybe a little more aggressive" in streamlining its operations.

Investment in Infinity will be continuing, however, and new versions incorporating both the Star Wars and Disney IPs apparently in the works.

Infinity has to date sold over 3m units worldwide and helped the Interactive arm to an operating income of $16m in the last fiscal quarter – that’s only Disney Interactive’s second ever profitable quarter.

Disney’s gaming unit has had a tumultuous few years, with drastic resizing already having taken place following console flops such as Epic Mickey.

Infinity was seen as being the company’s last stab at the business, and whilst news of its ongoing development is encouraging, these latest developments suggest Disney’s wider gaming aspirations are at the very least under pressure.