The entertainment giant's decision to lay off several hundred employees across film, television, and finance departments is part of Chief Executive Bob Iger's broader effort to slash costs amid a shifting landscape.
Disney Announces Additional Layoffs Amid Cost-Cutting Measures
Disney Announces Additional Layoffs Amid Cost-Cutting Measures
Disney continues its workforce reduction strategy, affecting hundreds more as it grapples with industry changes.
Disney has confirmed that it is laying off hundreds of employees worldwide, focusing primarily on its film, television, and finance sectors. This move comes as the company faces significant pressure due to a decline in traditional cable subscriptions and a shift in viewership towards streaming platforms. A company spokesperson commented, "As our industry transforms at a rapid pace, we continue to evaluate ways to efficiently manage our businesses while fueling the state-of-the-art creativity and innovation that consumers value and expect from Disney."
This latest wave of layoffs follows the significant cuts made in 2023, when approximately 7,000 employees were let go as part of an initiative by CEO Bob Iger to save around $5.5 billion. The current cuts reportedly affect multiple teams, including those within the marketing departments of its film and television divisions. Specific roles in Disney's casting, development, and corporate finance sectors will also be impacted. The spokesperson emphasized a "surgical approach" to minimize overall job losses and assured that no departments will be entirely eliminated.
Based in California, Disney maintains a workforce of around 233,000, with over 60,000 of those employees based internationally. The company operates multiple subsidiaries within the entertainment industry, including well-known brands such as Marvel, Hulu, and ESPN.
Despite these layoffs, Disney reported unexpectedly strong earnings in May, posting a revenue of $23.6 billion for Q1 2024, marking a 7% increase year-on-year, largely attributed to a surge in subscribers to its Disney+ streaming service. Throughout 2024, the company has released several new films, including "Captain America: Brave New World" and a live-action adaptation of "Snow White." The recent release of "Lilo & Stitch" has also garnered attention, breaking box office records in the United States during the Memorial Day holiday weekend, accumulating over $610 million in global ticket sales since its launch in May, according to data from Box Office Mojo.
