Walt Disney lays off 250 animation employees

More proof that things have been tough in Toon Town this year: Walt Disney Co. told 250 employees at its animation unit on Monday that either they are being laid off or their contracts will not be renewed over the next 12 months, reports The New York Times online. Last week another Disney unit, Miramax Films, said it will cut 75 jobs, the Times reported.

According to the animation unit's president, out executive Tom Schumacher, Walt Disney Animation had a peak of 2,200 employees in 1999. The years since have seen sea changes, including the rise of computer animation and increasing competition from other studios.