Disney is preparing more layoffs with up to 20% cost cuts
Disney is planning fresh layoffs across multiple studio and TV divisions.
The short version
- Managers have targets to cut annual costs by up to 20%.
- Thousands of workers have already lost jobs throughout this year.
- The entertainment giant employs over 230,000 people globally.
The Walt Disney Company, the massive entertainment conglomerate, is laying the groundwork for a fresh round of job cuts across multiple divisions. According to sources cited by Deadline, managers of affected teams have been given targets to achieve as much as 20% in annual cost savings.
The cuts will hit TV networks and the motion picture studio at varying amounts, impacting thousands of workers. Disney declined to comment on the latest reduction plans. The process follows ongoing layoffs throughout the year after Josh D’Amaro took over as CEO.
In April, 1,000 roles were eliminated, followed by hundreds more in July across Pixar and National Geographic. In August, Disney extended a voluntary retirement offer to longtime executives, which served as a precursor to involuntary staff reductions. Since then, hundreds of tech, human resources, and Experiences division employees have been pink-slipped, largely at the Disney Imagineering campus in Glendale, California.
Dana Walden, President and Chief Creative Officer of The Walt Disney Company, spoke about the continuous restructuring during an industry conference last month. Technology has set sights on the entertainment business, and the company must survive and thrive, she told the audience.
CEO Josh D’Amaro has put a heavy focus on cost reductions since taking the top job. During a recent earnings call, he explained that the savings will be used to reinvest in growth areas, new content, and technology infrastructure. Disney had a global headcount of just north of 230,000 at the end of the most recent fiscal year.
When a Mickey Mouse operation needs to trim the fat, the ax always seems to land on the people holding the pencils.
