A person familiar with the matter says The Walt Disney Co. is preparing to lay off under 5 percent of the employees at its studio, or up to about 250 people, next week.

Most of the people work in home video distribution, which was merged with the theatrical distribution division late last year, the person said.

DVD sales have been plunging industrywide and the studio is looking to cut costs.

The person was not authorized to speak publicly since the affected employees won't be told until next week.

The layoffs are the largest since last year, when Disney shut a Robert Zemeckis-run motion-capture facility in the San Francisco area last year and let go about 450 people.