Disney Interactive Media Group has slashed jobs in its online division as part of a revamp to help it stay competitive in the space, a person close to the Mouse said Thursday.
Disney reps wouldn’t comment on the layoffs, which were said to impact about 50 employees, or 3% of staff. The cuts hit only the online side of the biz and didn’t touch videogames.
The company “is constantly evaluating the business and looking for the best ways to stay competitive,” said one insider.
Last year, Disney topper Robert Iger said the goal is to turn the interactive arm profitable in 2013.
Division laid off a number of staffers, as part of a reorg, early last year as part of a “march to profitability,” Disney Interactive Media Group co-president John Pleasants said at the time.
During Disney’s third quarter, which wrapped up June 30, DIMG saw its losses fall nearly 50% to $42 million during the three-month period, but saw revenue decline 22% to $196 million.