Disney will lay off hundreds of workers in its interactive gaming unit this week, according to multiple reports.
Variety reports the cuts will come from Playdom which the Mouse House purchased in 2010 for $US563 million.
The news comes ahead Of Disney’s Q1 earnings report Wednesday.
As a whole, Disney Interactive has nearly 3,000 employees.
Disney’s Interactive sector has been troubled with a series of layoff in recent years.
Last year, Disney laid off 150 staff members from Lucasfilm’s video game division LucasArts. Disney acquired the company December 2012 from a $US4 billion deal with George Lucas.
In 2012, 50 jobs were cut from Interactive during a restructuring period.
In November, Jimmy Pitaro took over as the president of Disney Interactive.
As the sector has tried to gain profitability it has seen the successful launch of video game “Infinity.” The combination game and purchasable figurines brought in $US16 million operating income during the end of the company’s fiscal year.
The cuts are expected to come following Disney’s Q1 announcement Wednesday.
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