Significant layoffs at Disney's Interactive Group
Disney Interactive Media Group laid off a “sizable” number of employees Monday as part of a restructuring of the money-losing digital unit, according to people with knowledge of the situation.
It is unclear exactly how many people have lost their jobs in the reorganization. Cuts include “minimal” job reductions at Junction Point Studios in Austin, Texas, the development group within Disney Interactive that created the top-selling Epic Mickey video game, a company spokeswoman said. She declined to say how many employees were let go at Disney Interactive's eight development studios, or how many people work for the digital group.
Disney acquired Junction Point in 2007 to bring acclaimed game developer Warren Spector's brand of storytelling into the company. Spector did not respond to requests for comment.
The interactive group's co-presidents, James A. Pitaro and John Pleasants, are under pressure to staunch the losses at the unit, which produces video games, creates online virtual worlds and manages the company's Disney.com portal.
Since Pleasants and Pitaro took the helm last fall, some key Disney interactive executives have exited, including Graham Hopper and Paul Yanover.
Earlier this month, Disney closed its Vancouver studio, Propaganda Games, putting 70 people out of work. That unit had recently completed work on Tron: Evolution, a weak-selling console game that explores the world of Walt Disney Studio's sci-fi film, “Tron: Legacy.”
--Dawn C. Chmielewski
Disney could have made alot of money if they hadn't shut down the Virtual Magic Kingdom game that they did back in 2005-2008. They could have made so much money by making it a pay to play game. Epic Mickey is a really good game. they ought to do another one just like it.
Posted by: miranda | January 24, 2011 at 06:35 PM
It appears as though Disney is once again taking itself seriously, getting further and further away from the temptations that are out there and beginning to focus on what's in the spirit of Walt Disney. This is good news for people who grew up with Disney, and should remind them of what it was like to love Disney and everything it stood for up until twenty something years ago. The idea of Disney being the producers of quality family material and a company that had remained special for decades because of how different and independent it was, makes it seem that Disney is getting closer to what it stood for back then; thus, reducing efforts to make interactive video games and things of that nature. One might assume that Disney has considered its options and chosen to return to the good image of making movies and bringing with it a magical feeling it used to be famous for.
Brendan Ryan
The Brendan Ryan Company
Houston, Texas
Posted by: Brendan Ryan | January 24, 2011 at 07:47 PM
Looks like Disney is trying to cut its way to profitability again on the backs of their employees, again.
As a long time investor and former employee, my opinion is that Disney - at $39 per share - has gotten ahead of itself. For the last 15 years an optimistic price for Disney was $32 per share, and is the optimistic price going forward for the next 15 years - that is, $32 per share.
Despotic rulers of the Magic Kingdom may come and go; but, like Mickey Mouse, somethings never change.
Posted by: Tom Klemesrud | January 25, 2011 at 07:52 AM
Disney had a business unit that was not making money. They shut it down. It has nothing to do with philosophy or magic. Just ask the dozens of people who are out of work.
Posted by: SilentSteve | January 25, 2011 at 10:12 AM
Disney, like many companies in this industry, are led by people with no vision. The reputation Disney has now is that of a 2nd tier company run by 3rd tier leaders. It's reputation of being an employer of choice has long been passed.
Cutting isn't what makes great companies great. Leadership and vision is, and it doesn't matter if you're flying planes (Southwest) or making shoes (Nike) - any company can have great leaders that inspire. Disney lost its mojo 20 yrs ago, and has been in the wilderness since.
Posted by: trust no one | January 25, 2011 at 12:35 PM
To mitigate what I said a bit, (perhaps out of guilt): On Disney's worst day, Bob Iger doesn't treats his employees any worse than their Sea Organization counterparts, at Scientology's Golden Era Film Studios, on their best day - when they get extra helpings of rice and beans.
Posted by: Tom Klemesrud | January 25, 2011 at 01:17 PM