In a significant move that has left many Disney employees impacted the entertainment giant has carried out another round of layoffs, resulting in hundreds of job losses. This marks the fourth and most substantial round of layoffs at the company over the past year, with a focus on Disney’s television operations.
While Disney executives confirmed the layoffs to Deadline, the precise number of employees affected remains undisclosed. The cuts primarily target departments such as corporate financial operations, television, film, marketing, casting, development, and television publicity. However, no teams are being eliminated, and most of the impacted staffers are located in Los Angeles, a key hub for the company’s operations.
This recent wave of layoffs comes just three months after Disney’s previous reduction in workforce, which saw 200 employees let go, including staff members at ABC News in New York and Disney’s entertainment networks. At that time, officials attributed the layoffs to shrinking TV ratings and revenue, reducing the company’s workforce by six percent.
Earlier in October, ABC News made its rounds of cuts, letting go of 40 employees. This move coincided with a restructuring of the company, resulting in the merger of ABC Signature (a production arm of ABC) into 20th Television. The restructuring consolidated teams working on ABC and Hulu Originals scripted comedies and dramas, leading to the layoff of 30 additional staff members.
The increased layoffs across Disney TV stations reflect the broader industry challenges, particularly the rise of streaming platforms. With consumers increasingly shifting away from traditional TV to streaming services like Netflix, Paramount+, and Disney+, the company is working to streamline its operations and reduce costs.
CEO Bob Iger, who took the reins in 2023, previously set an ambitious goal of cutting operating costs by $7.5 billion. To achieve this, Disney eliminated a total of 7,000 jobs that year as part of a broader cost-cutting initiative. While the company has faced significant restructuring, Iger has also emphasized the creation of new jobs in sectors such as theme parks and consumer experiences.
Despite the cuts, Disney’s financial outlook shows some positive signs. Following the announcement of the layoffs, Disney’s stock experienced a dip in regular trading but saw a slight uptick in after-hours trading. In its most recent quarterly earnings report, the company exceeded expectations, with direct-to-consumer operating profit rising by $289 million to $336 million.
As Disney navigates these challenges, all eyes remain on how the company will balance cost reductions with growth in its experience and entertainment divisions, particularly in the rapidly evolving world of streaming and theme parks.
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