Disney is facing further challenges as it reveals plans to lay off several hundred employees globally, primarily affecting its film, television, and finance departments. This decision is in response to the evolving entertainment landscape, where audiences are increasingly favoring streaming platforms over traditional cable TV subscriptions. "As our industry transforms at a rapid pace, we continue to evaluate ways to efficiently manage our businesses while fuelling the state-of-the-art creativity and innovation that consumers value and expect from Disney," a spokesperson shared with the BBC.
These cuts come after a major layoff wave earlier this year, which saw around 7,000 positions eliminated as part of CEO Bob Iger's strategy to achieve $5.5 billion (£4.1 billion) in savings. The current reductions will touch various teams, including those in marketing for films and television, as well as casting and corporate finance. However, the company emphasized that they are taking a "surgical approach" to minimize employee impact, ensuring that no teams are entirely disbanded.
California-based Disney employs about 233,000 workers, with over 60,000 operating outside the United States. The company boasts ownership of several prominent entertainment brands, including Marvel, Hulu, and ESPN. Interestingly, Disney's recent financial performance has been more promising, reporting a revenue of $23.6 billion for the first quarter of the year—7% higher than the previous year—largely driven by a surge in Disney+ subscribers.
Despite mixed responses to some recent film releases, including an underwhelming performance for the live-action remake of Snow White, Disney's animated film Lilo & Stitch achieved box office success, generating over $610 million globally since its May debut, as reported by industry analysis firm Box Office Mojo.
