Disney plans thousands of job cuts to save 20 per cent in costs
The entertainment giant is asking managers to reduce annual expenses through job eliminations and budget cuts.
Walt Disney Co. is preparing to cut thousands of jobs as it instructs certain managers to aim for 20 per cent in annual cost savings, according to reports by Moneycontrol, Deccan Herald and BusinessLine.
People familiar with the matter, who requested anonymity due to the private nature of the discussions, said the savings may come from reducing expenses and eliminating positions. Some divisions, including the movie studio, TV networks and theme parks, will be affected disproportionately.
Chief Executive Officer Josh D’Amaro intends to put some of the saved funds back into technology, film and TV programming, as well as the cruise ship and theme park businesses. The company has pledged double-digit growth in adjusted earnings per share for the current fiscal year.
Disney had 231,000 employees globally at the end of the previous fiscal year. In recent years, the company has already removed thousands of roles and cut billions of dollars in costs across units such as ESPN, Pixar, ABC and the film studio.
Disney President Dana Walden spoke at the Bloomberg Screentime conference in Los Angeles last month, stating that the company must constantly evaluate its organisational size and structure to survive and grow. A representative for Disney declined to comment on the matter.