Disney's recent layoffs affect hundreds globally, signifying ongoing challenges amidst a shift towards streaming.
Disney Announces Additional Layoffs Amid Cost-Cutting Measures
Disney Announces Additional Layoffs Amid Cost-Cutting Measures
The entertainment titan continues to restructure as it adapts to changing viewing habits.
Disney has confirmed that it is laying off several hundred employees across various global locations, predominantly targeting its film, television, and finance divisions. This move adds to the company’s efforts to streamline operations at a time when traditional cable subscriptions are dwindling and audiences are flocking to streaming services.
In a statement, a Disney spokesperson articulated the company’s need to adapt to the fast-moving industry landscape. “As our industry transforms at a rapid pace, we continue to evaluate ways to efficiently manage our businesses while fuelling the state-of-the-art creativity and innovation that consumers value and expect from Disney,” they noted.
The latest round of cuts follows significant layoffs earlier in 2023, where around 7,000 employees lost their positions as part of CEO Bob Iger's strategy to slash costs by $5.5 billion (£4.1 billion). Departments affected by the current layoffs include marketing for film and television, as well as casting, development, and corporate finance teams. However, the company reassured that it would not be closing down any departments entirely.
Currently, Disney employs around 233,000 individuals globally, with over 60,000 based outside the United States. The entertainment conglomerate owns major franchises and platforms, including Marvel, Hulu, and ESPN.
Despite the job losses, Disney reported stronger-than-expected financial performance in May, posting revenue of $23.6 billion for the first quarter of the year, a 7% uptick from the same period last year. This financial growth was attributed to a surge in subscribers to the Disney+ streaming service.
This year, Disney has launched several major films, including “Captain America: Brave New World” and “Snow White.” The company’s newest animated feature, “Lilo & Stitch,” has shattered box office records this Memorial Day weekend, with international ticket sales surpassing $610 million since its release in May, according to industry metrics from Box Office Mojo.
In a statement, a Disney spokesperson articulated the company’s need to adapt to the fast-moving industry landscape. “As our industry transforms at a rapid pace, we continue to evaluate ways to efficiently manage our businesses while fuelling the state-of-the-art creativity and innovation that consumers value and expect from Disney,” they noted.
The latest round of cuts follows significant layoffs earlier in 2023, where around 7,000 employees lost their positions as part of CEO Bob Iger's strategy to slash costs by $5.5 billion (£4.1 billion). Departments affected by the current layoffs include marketing for film and television, as well as casting, development, and corporate finance teams. However, the company reassured that it would not be closing down any departments entirely.
Currently, Disney employs around 233,000 individuals globally, with over 60,000 based outside the United States. The entertainment conglomerate owns major franchises and platforms, including Marvel, Hulu, and ESPN.
Despite the job losses, Disney reported stronger-than-expected financial performance in May, posting revenue of $23.6 billion for the first quarter of the year, a 7% uptick from the same period last year. This financial growth was attributed to a surge in subscribers to the Disney+ streaming service.
This year, Disney has launched several major films, including “Captain America: Brave New World” and “Snow White.” The company’s newest animated feature, “Lilo & Stitch,” has shattered box office records this Memorial Day weekend, with international ticket sales surpassing $610 million since its release in May, according to industry metrics from Box Office Mojo.
