Disney is reportedly laying off hundreds of employees. The majority of the reductions will come from Playdom, sources say.
Disney's Interactive unit is planning to layoff several hundreds of employees, according to the Wall Street Journal.
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The news wasn't expected, considering Disney Interactive's successful launch of "Infinity," a videogame that dabbles with real toys. Since its launch in August, the game sold more than three million copies and generated over $16 million in operating income on a $396 million revenue.
It just wasn't enough. Besides, Disney just had its second profitable quarter in five years.
President Jimmy Pitaro is also planning to reorganize Disney Interactive's executive team. The media unit, which runs other popular game franchises such as "Where's My Water," has over 3,000 employees.
The exact number of layoffs is unknown.
People close the company said that the layoffs will start after the company's quarterly financial results on Wednesday this week. Sources added that Disney's Playdom will see the most layoffs. Playdom was acquired by Disney in 2010 for $563 million.
Moving forward, Disney is expected to continue investing on "Infinity." Sources told WSJ that new characters will be added to the game, including superheroes from Marvel and Star Wars characters.
Disney declined to comment on the report.