Disney Announces Further Layoffs as Restructuring Continues
Disney continues to lay off several hundred employees globally as part of its restructuring strategy amidst industry shifts.
Key Points
- • Disney is laying off several hundred employees in various divisions globally.
- • These layoffs are part of a broader cost-cutting strategy amid industry changes.
- • This marks the largest wave of layoffs in Disney's recent history.
- • Despite strong performance in its streaming service, Disney proceeds with significant job cuts.
Disney has revealed plans to lay off several hundred employees globally, primarily targeting its cinema, television, and marketing divisions. This marks the fourth round of staff reductions in less than a year and comprises the largest number of job cuts to date. As the entertainment giant adapts to shifts in the industry, it focuses heavily on transitioning from traditional cable to streaming services.
The layoffs affect a variety of roles across affected teams, including marketing, communications, advertising, casting, and content development. This restructuring is part of a comprehensive cost-cutting strategy aimed at saving $7.5 billion, as CEO Bob Iger addresses the rapid transformation of media consumption. This comes on the heels of 2023’s previous layoffs, where Disney cut 7,000 jobs to save $5.5 billion.
Despite a solid financial showing where Disney+ has recently increased its subscriber base to 126 million and reported a 7% rise in revenue to $23.6 billion, the company is persisting with layoffs. Analysts note that the ongoing success of Disney+ and other ventures does not mitigate the extensive job cuts that have impacted divisions like ABC News and Disney Entertainment Networks as well.
Disney’s spokesperson emphasized the necessity of these layoffs in navigating a challenging and evolving entertainment environment, particularly with continued underperformance in traditional television sectors. This recent move underlines Disney's commitment to restructuring for long-term viability in a streaming-centric landscape.