Disney Layoffs: Besides LucasArts, What Other Divisions Are Getting Axed?

In the latest of a series of job cutbacks begun late last year because of improvements in technology, Disney will make layoffs at its studio and consumer product divisions within the next two weeks, according to Reuters. In the studio division, the job cuts will mostly be in the marketing and home video units, with a small number also made in the animation wing. In the consumer products division, they will mostly result from attrition. The exact number of jobs to be cut in the decision remains uncertain.

Earlier this week, Disney laid off 150 people when it shut down the video game company LucasArts, which it acquired in the $4 billion purchase of LucasFilm in December.

Variety reported that Disney studios are nervous about what's to come, quoting an insider who said the layoffs will "cut us to the bone." The studio is planning to develop fewer films than usual, relying more heavily on titles from its labels Marvel, Pixar and recently acquired Lucasfilm. The film studio is actually one of Disney's least profitable operations, though it's also one of the most important, as it establishes franchises which are then expanded into more profitable ventures.

In 2011, it cut about 200 people at Disney Interactive, a video game unit, as part of a decision to move away from console games and more on online and mobile entertainment. Last year it cut another 50 jobs. The unit has been hitting hard times and the company hopes that a new gaming initiative, Infinity, will make a big splash when it debuts later this summer. Infinity will be a venture which blends toys with games.

Disney also made cuts at its publishing unit last year after it moved its headquarters to Burbank, California from New York.

Disney CEO Bob Iger reportedly ordered an internal audit late last year in conjunction with chief financial officer Jay Rasulo in order to identify areas of redundancy and departments which needed to be remodeled. Top executives are emphasizing that the layoffs will put the company in a better position for future growth. It's expected that the cuts will be carried out before May 7, when Disney will release its second quarter earnings. The company saw its earnings drop 6 percent last quarter, to $1.38 billion, but last year was one of its best years, with profits up 18 percent in the 2012 fiscal year, reaching $5.7 billion.

In pre-market trading Friday, the company's shares were down 1.46 percent at $56.75, according to Fox Business News.