Movies

Disney cuts 300 corporate staffers in latest wave of layoffs

BBG News

As a movie enthusiast who has witnessed the evolution of Disney from a small animation studio to a global entertainment behemoth, I find myself deeply saddened by this latest round of layoffs at Walt Disney Co. My heart goes out to the affected employees, many of whom have dedicated their lives to bringing magic and joy to audiences worldwide.

Disney Company has started a new round of job cuts, affecting its corporate staff who are now part of the latest group impacted by Disney’s $7.5 billion cost reduction strategy in the media and entertainment industry based in Burbank.

This week, it has been reported that Disney plans to cut around 300 positions. In a statement issued on Thursday, Disney explained that they aim to streamline their resources and expenses in order to foster cutting-edge creativity and innovation that consumers appreciate and anticipate from Disney.

In the course of our continuous improvement efforts, we’ve been examining the operational costs associated with our corporate operations and found potential methods to make these processes more streamlined and cost-effective. (Disney Spokesperson)

As a cinephile, I’ve been hearing some buzz about an impending round of changes across several departments at Disney – legal, HR, finance, and comms. Seems like we’re on the verge of a shakeup!

In the previous year, Disney initiated a plan to shed around 7,000 jobs as part of their cost-cutting strategy to boost profits for their streaming service. With Bob Iger once again at the leadership position, the company moved swiftly, dismissing approximately 4,000 employees by April 2023 and raising their goal to a total of 8,000 job reductions.

In May 2024, Pixar, which is owned by Disney and known for its animation work, decided to let go of approximately 175 employees, representing a 14% reduction in staff. This move came during a time when Pixar was grappling with a decline in box office revenue, partly due to the company’s choice to release several films originally intended for theaters directly onto streaming platforms even as cinemas began reopening, a decision that sparked controversy.

Following the success of “Inside Out 2” at the summer box office, the Pixar jinx appears to have been broken.

As a die-hard film enthusiast, I can’t help but feel the sting as the summer heat gives way to sobering news from Disney Entertainment Television. In July, a 2% reduction in workforce took its toll, translating into 140 jobs being cut. The team at National Geographic seemed to bear the brunt of this hardship.

In response to excessive spending during the ‘streaming wars’, many prominent Hollywood studios like Paramount, Amazon, and Warner Bros. Discovery are scaling back their production and tightening their budgets as a strategic move to keep pace with Netflix. Notably, these entertainment and media giants have also experienced significant workforce reductions due to layoffs.

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2024-09-26 22:01

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