Disney has commenced additional layoffs, affecting hundreds of employees globally, as it continues to navigate the challenges posed by the shift towards streaming services.
Disney Announces Further Layoffs Amid Cost-Cutting Strategy
Disney Announces Further Layoffs Amid Cost-Cutting Strategy
Company struggles with transition to streaming platforms as job cuts affect various departments
Disney has declared it will lay off several hundred employees worldwide, focusing on areas including film, television, and finance amid ongoing cost-cutting measures. This decision is part of the company's broader strategy to adapt to changing viewer preferences as more consumers abandon traditional cable TV in favor of streaming platforms. A spokesperson for Disney remarked, "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."
The recent layoffs come on the heels of significant reductions made earlier in 2023, when Disney let go of approximately 7,000 employees under the direction of CEO Bob Iger, aiming to save around $5.5 billion. The impact of the latest cuts will be felt across various teams, including marketing for both film and television, casting and development, and corporate finance. Company representatives emphasized their efforts to ensure that the layoffs were "surgical" and stated that no departments would be entirely disbanded.
Disney employs around 233,000 individuals globally, with over 60,000 based outside the United States. The entertainment conglomerate owns several well-known brands including Marvel, Hulu, and ESPN. Despite the layoffs, Disney reported better-than-expected earnings in May, with a revenue of $23.6 billion for the first quarter of the year—an increase of 7% compared to the same time last year, attributed to a rise in subscribers to Disney+.
The company has launched various films this year, including "Captain America: Brave New World" and a live-action version of "Snow White." The latter did not perform to expectations at the box office, receiving unfavorable reviews. In contrast, Disney's latest animated release, "Lilo & Stitch," broke box office records during the Memorial Day weekend, accumulating over $610 million in global ticket sales since its debut in May, according to Box Office Mojo.
The recent layoffs come on the heels of significant reductions made earlier in 2023, when Disney let go of approximately 7,000 employees under the direction of CEO Bob Iger, aiming to save around $5.5 billion. The impact of the latest cuts will be felt across various teams, including marketing for both film and television, casting and development, and corporate finance. Company representatives emphasized their efforts to ensure that the layoffs were "surgical" and stated that no departments would be entirely disbanded.
Disney employs around 233,000 individuals globally, with over 60,000 based outside the United States. The entertainment conglomerate owns several well-known brands including Marvel, Hulu, and ESPN. Despite the layoffs, Disney reported better-than-expected earnings in May, with a revenue of $23.6 billion for the first quarter of the year—an increase of 7% compared to the same time last year, attributed to a rise in subscribers to Disney+.
The company has launched various films this year, including "Captain America: Brave New World" and a live-action version of "Snow White." The latter did not perform to expectations at the box office, receiving unfavorable reviews. In contrast, Disney's latest animated release, "Lilo & Stitch," broke box office records during the Memorial Day weekend, accumulating over $610 million in global ticket sales since its debut in May, according to Box Office Mojo.
