In January, Disney (NYSE: DIS) Interactive Media Group quietly laid off around 200 staffers on the video games side following a review by new Co-President John Pleasants. Today, it’s Jimmy Pitaro’s turn, paidContent has learned, with nearly 80 employees on the online side losing their jobs. DIMG had nearly 4,000 employees at the beginning of 2011; the two rounds combined mean a loss of seven percent.
Pitaro was not available for an interview; he and and Pleasants have kept intentionally low profiles since taking the co-president roles in October. Disney provided a statement confirming “targeted” layoffs “as part of setting a strategic direction for future success in digital media.” The statement said this continued the restructuring but my understanding is it should be the last mass reduction as Pitaro and Pleasants put their stamp on DIMG operations.
The two explained their drive to accelerate the timeline to make DIMG profitable during an investors’ event last month with restructuring as a key. They want a smaller, more scalable operation with an emphasis on growth. They also want more flexibility. Pleasants said then he thought operating costs should come down another 25 percent to scale the business.