Disney is confirming a large-scale restructuring today that will result in the firing of hundreds of employees, representing 26 percent of its global workforce. But a source said there will be little to no impact felt in Seattle, where employees will continue to be tasked with developing the Facebook and mobile game, Marvels: Avengers Alliance.
A spokesperson declined to confirm that employees in Seattle would largely be untouched, since the company is not breaking down the impact geographically. About 700 people are losing their jobs.
However, the cutbacks were not a huge surprise since the company is focusing on getting its interactive division to profitability. As a part of today’s plans, it will be combining the company’s mobile and social games business. It will also be cutting back on the number of titles in development and relying more on outside licensing.
In addition, there will be a shift in advertising strategies on Disney.com from banner ads to subscriptions, according to The New York Times.
A spokesperson provided this statement on today’s actions: “Disney Interactive has consolidated several lines of business as part of an effort to focus the division on a streamlined suite of high quality digital products. As a result of this restructuring, we have undergone a reduction in workforce. These actions were difficult but necessary given our long-term strategy focused on sustainable profitability and innovation.”
It’s ancient history now, but Disney has maintained a large presence in Seattle since purchasing Starwave, which was founded by Paul Allen in 1993.
