The Walt Disney Company (DIS) is planning to conduct several hundred layoffs in its interactive segment, which has nearly 3,000 employees, Wall Street Journal reported.
The layoffs are scheduled to take place after the company releases its first-quarter fiscal 2014 results on Feb 5, 2014. One of the units which is likely to witness cutbacks includes Playdom, a social gaming division, acquired by the company in 2010.
As per sources, the company intends to make certain alterations in its Interactive division, which comprises its main website, Disney.com and gaming products. In fact, the unit also includes Disney’s new video game, Infinity, which was launched last year in August. Infinity’s robust initial revenues also contributed largely to the division’s profits.
In the previous quarter, Interactive revenues rose over twofold to $396 million, while operating profit was $16 million against a loss of $76 million in the prior-year quarter. The increment reflected higher console game sales (especially propelled by launch of Disney Infinity) and growing Japan mobile business.
Apart from Disney, many other retailers like Target Corp. (TGT), J. C. Penney Company, Inc. (JCP) and Best Buy Co., Inc. (BBY) have announced layoffs recently as a cost-cutting measure.
Major electronics retailer, Best Buy is likely to slash 950 jobs in its Canadian operations (Best Buy and Future Shop outlets).
Department store retailer J. C. Penney recently announced the closure of underperforming stores as part of its turnaround strategy. The company will close 33 outlets that will result in the layoff of 2,000 employees. At the same time, the company plans to open a new outlet in Brooklyn, N.Y.
Also, last month, specialty retailer Target planned to layoff 475 employees worldwide and announced that it will no longer fill up about 700 vacant positions.
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