Feb 04, 2014 10:15 AM EST
Disney Interactive Gaming-Unit to Lay Off Hundreds of Workers

Walt Disney Company is preparing to lay off several hundred people in its interactive unit, a division responsible for games and digital media.

The Wall Street Journal reported Monday that the layoffs are expected to begin after the entertainment giant releases its quarterly earnings on Wednesday. The interactive-media unit, which employs about 3,000 workers, has reportedly been struggling to reach profit marks for the last several years.  

The layoffs could include as many as 200 employees over the next two to three weeks. Disney Interactive laid off 50 people in September 2012.

The unit has lost more than $200 million a year between 2008 and 2012, which was considered their period of transition when it parted ways with its co-president John Pleasants. Jimmy Pitaro, the former co-president of the unit, was given full control of the Disney Interactive in November.

Disney has laid off staff before in order to cut costs. Under California law, Disney must report layoffs to the state 60 days in advance, but no notice has been given, the Los Angeles Times reported.

On the chopping block is Playdom, a social gaming business Disney purchased in 2010 for $563 million. Last year, the interactive reported a profitable fourth quarter with $16 million. However, the unit lost $76 million during the fiscal year, which ended Sept. 28.

Disney will continue to invest into "Infinity," a combination video game and toy line, which cost Disney about $100 million to develop and launch. "Disney Infinity" was released last August and has sold more than three million copies worldwide.

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