Walt Disney Co. has cut 250 jobs, or about 5% of its 5,000 employees in its consumer products and digital media staff, a spokesman said Wednesday.
About half of the layoffs were among video game workers, due to Disney shifting its game strategy away from internal development to a licensing model. Some of the employees worked at a Bellevue, Wash., facility that supported the Marvel: Avengers Alliance mobile and social network games, which were shut down last week after poor performance by a sequel — an event common in the fast-changing industry.
The other half of the cuts stemmed from last year’s move to combine the Disney Consumer Products and Interactive Media operations in Glendale, Calif., which has led to elimination of overlapping departments including marketing and human resources.
Disney has more than 180,000 employees worldwide and is the world’s largest entertainment conglomerate. It cut 300 jobs in May when it got out of the video game publishing business, scrapping its Disney Infinity-branded console games business, resulting in a $147 million charge against earnings in the second quarter ended March 31.
Disney also cut 30 slots in July at Maker Studios and reduced the work force in August at its Imagineering research and development operation.
Disney Consumer Products and Interactive Media saw an 8% decline in second quarter profits to $357 million due to lower sales of “Frozen” merchandise and the unfavorable impact of foreign exchange rates. The unit’s third-quarter profit slid 7% to $324 million.
News about Wednesday’s layoffs was first reported by the New York Times.