Burbank, September 25: Disney has initiated a new round of layoffs affecting hundreds of corporate-level employees. Nearly 300 individuals were laid off as a cost-cutting measure. The Disney layoffs are implemented to effectively manage resources and costs and fuel the creativity and innovation expected by customers, said the company representative.
The Walt Disney Company has begun laying off employees working at the corporate level to improve the profitability of the business, according to a report by Variety. The media and entertainment giant will cut jobs from multiple departments to reduce costs and improve operational efficiency. The report said that 300 people will be laid off from departments like communication, finance, human resources, and legal. Paramount Global Layoffs 2nd Phase Begins as US Entertainment Giant Aims for Improving Profitability and Cut Costs: Report.
According to the report, the Disney layoffs did not affect divisions like EPSN and theme parks. Recently, Paramount Global, a rival to Walt Disney Co., began phase two of its massive job cuts due to restructuring and cost-cutting. This year, another media conglomerate, Warner Bros. Discovery, laid off several employees.
Variety said Disney adopted cost-cutting measures that affected around 8,000 positions. Hollywood, media, and entertainment firms have been struggling to keep up with traditional businesses and facing other challenges that compelled them to restructure their businesses.
Besides Disney, Paramount Global and Warner Bros. Discovery, several media and entertainment companies laid off significant workforce to cut costs. They layoffs involved companies like Netflix, A+E network, Merit Street Media, Fox Entertainment, CNN, Media Matters, NBC, Allen Media Group, Marvel Studio, Time Magazine and The Messenger, after which it was shut down. Warner Bros Discovery Layoffs: US-Based Entertainment Company To Lay Off Around 1,000 Employees as Part of Cost-Cutting Efforts.
These media and entertainment job cuts suggested the struggles of the industry due to various factors. Bob Iger was reinstated as Disney CEO in 2023, who introduced a massive layoff plan affecting nearly 7,000-8,000 people, as per reports, comprising around 3.2% of the company’s global workforce. In 2024, Disney also suffered a 6% operating profit decline at its theme parks. This comes after the The Walt Disney layoffs affected 140 employees from television division in July 2024.
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