Disney Restructures Videogame Division, Lays Off 200 Employees

Paul Lilly

Disney, home of the self-described happiest place on Earth, has laid off close to 200 employees as it tries to revamp its interactive media division, The Wall Street Journal reports .

Most of those pink slips ended up in the hands of employees working for Disney's console game operations, which formerly consisted of a staff of 700. Going forward, more layoffs are expected.

"As part of setting a strategic for future success in the digital media space, the Disney Interactive Media Group yesterday began a restructuring process," a Disney spokeswoman said in a statement.

The biggest blow coming from Disney's restructuring efforts includes the shuttering of one of its game studios, Progaganda Games, which worked on the Tron game. Looking ahead, it appears Disney is more interested in pursuing mobile and social games as the company attempts to lift its interactive media group out of the red.

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