Walt Disney considers thousands of job cuts to save costs
The entertainment company has asked some managers to target 20 per cent in annual savings through job eliminations and expense reductions.
Walt Disney Co. is moving toward cutting thousands of jobs and has instructed some managers to aim for 20 per cent in annual cost savings, according to reports from Bloomberg News and Deccan Herald. The savings may be achieved through both staff reductions and lowering expenses, according to people familiar with the matter.
The restructuring will not impact all areas equally, with certain operations expected to face larger shares of the cuts. Chief Executive Officer Josh D’Amaro intends to put some of the saved funds back into technology, film and TV programming, cruise ships, and theme parks.
The company had 231,000 employees globally at the end of the last fiscal year. Disney has previously reduced costs by billions of dollars and eliminated thousands of roles, including 7,000 positions in 2023 and approximately 1,000 in April.
Disney President Dana Walden previously noted at a conference in Los Angeles that the company must constantly evaluate its organisational structure and size to survive and grow amidst technological shifts.
Other media firms, including Netflix Inc., Sony Pictures Entertainment, Skydance Corp.’s Paramount and Warner Bros. divisions, have also implemented job cuts. This comes as traditional television revenue declines and competition from streaming services and social media increases.
A representative for Disney declined to comment on the matter.