The Walt Disney Company is carrying out a new wave of layoffs affecting several hundred employees worldwide, according to the entertainment conglomerate’s announcement this Monday. The cuts span multiple divisions, including film and television marketing, television advertising, casting, development, and corporate financial operations.
This is the fourth round of layoffs in the last 10 months affecting Disney’s television operations.
This is the largest of them all. The layoffs are part of the company’s ongoing effort to “operate more efficiently,” according to Disney.
According to Reuters, the cuts affect multiple teams worldwide. Sources cited by Deadline report that the scale of the layoffs in Disney Entertainment’s film and television sectors is comparable, with no entire teams being eliminated.
Most of the affected employees from Disney Entertainment Television are based in Los Angeles, sources indicated. The specialized outlet noted it will continue its coverage as more details emerge about those impacted during what is expected to be “a difficult day on Disney’s campuses.”
Among the executives affected by the layoffs is Eric Souliere, vice president of casting for 20th Television, who had been working on Ryan Murphy’s series “American Horror Story” and “9-1-1.” However, Souliere will not be going far, as the former casting director will transition to casting for the new spin-off, “9-1-1: Nashville.”
Tony Tompson, vice president of Content Development at Hulu Originals, who had been with the streaming platform for over six years, is also reported to be leaving. Lower-level development executives, including a drama programming manager at ABC Hulu, have also been affected.
Context of Previous Layoffs at Disney
This new round of layoffs follows a series of cuts Disney has implemented in recent months. In March, the company laid off nearly 200 employees in its ABC News Group and Disney Entertainment Networks units, representing approximately 6% of the workforce in those divisions, according to Reuters.
In October of last year, a major restructuring involved the closure of ABC Signature, whose operations were merged with 20th Television, and the consolidation of ABC and Hulu Originals’ drama and comedy teams. This resulted in approximately 30 layoffs in Disney Entertainment Television, according to Deadline.
Previously, in July 2023, Disney Entertainment Television underwent another round of cuts affecting around 140 people, representing about 2% of the total workforce, with 60 of those in National Geographic.
Cost-Cutting Strategy Under Bob Iger
The current layoffs are part of a broader cost-reduction process initiated by Bob Iger upon his return as Disney’s CEO. In early 2023, Iger set a goal of at least $7.5 billion in cost reductions, including the elimination of approximately 7,000 jobs that year.
According to The Wall Street Journal, Disney, like many other entertainment companies, has been looking for ways to save costs in recent years. Reuters noted that in 2023, Disney cut 7,000 jobs as part of an effort to save $5.5 billion.
This cost-reduction strategy comes as Disney and other traditional media companies restructure their businesses to adapt to the shift of audiences from cable television to streaming platforms.
Disney’s Recent Financial Results
Despite the layoffs, Disney’s recent financial results have been positive. According to Deadline, the company’s second-quarter earnings exceeded Wall Street expectations last month, driven primarily by experiences and sports, with streaming also delivering strong results.
The operating income for the direct-to-consumer segment increased by $289 million, reaching $336 million. Reuters also reported that Disney’s latest earnings report surpassed Wall Street expectations with an unexpected boost from the Disney+ streaming service and strong results from theme parks.
Disney’s stock, which has risen 21% since the earnings report, fell 0.3% to $112.62 Monday afternoon, according to Reuters.
Restructuring Trend in the Entertainment Industry
The layoffs at Disney occur within a broader context of restructuring in the entertainment industry. Deadline noted that the cuts are part of an ongoing cost-reduction process among traditional media companies as they reshape their businesses to focus on streaming and face economic headwinds.
Disney and other companies are reshaping their business strategies in response to the shift of audiences from cable television to streaming platforms.
The Disney layoffs follow staff cuts at NBCUniversal, as the company separates several cable networks into a new entity called Versant, according to Deadline.
At this year’s annual shareholder meeting, Iger spoke about creating new jobs, primarily in Disney Experiences, including theme parks, which contrasts with the cuts in other divisions of the company.
Image: Infobae
