Disney Employees Blindsided as Company Slashes Jobs Again
The Walt Disney Company has seen no shortage of transitions over the last few years. From new streaming strategies to massive leadership changes, the entertainment giant has spent much of the last decade trying to adapt to shifting market demands and internal pressures.
But as fans admire record-breaking box office hits or eagerly await new theme park expansions, there’s a more sobering side to the story playing out behind the scenes.
Related: Disney Blasts YouTube for Stealing Top Executive in Shocking Lawsuit
Disney has implemented yet another round of layoffs—this time affecting hundreds more employees across several divisions.
Nearly three years ago, the company made headlines when Bob Iger returned as CEO in November 2022. Iger’s return followed a turbulent stretch under former CEO Bob Chapek, who struggled to lead the company through the pandemic and its aftermath.
In less than three years as CEO, Bob Chapek faced a string of challenges — the stock was underperforming, employee morale was low, Disney+ was posting massive losses, and the company’s reputation had taken a significant hit.
Related: Bob Iger “Obsessed” With Avoiding Another Bob Chapek Mistake
To address the growing challenges, Iger wasted no time in laying out his vision. “He announced that more than 7,000 positions would be cut in an attempt to save $5.5 billion.” The first wave of layoffs hit in spring 2023, followed by additional rounds at Pixar, Disney Entertainment Television, and corporate offices.
The cuts continued this year. In March, nearly 200 people from ABC and Disney Entertainment were let go. “In March of this year, ABC and Disney Entertainment were ‘gutted’ when nearly 200 employees were let go.”
Now, a new wave of layoffs is impacting even more workers.
Related: Legal Changes Could Result in More Disney Cast Members Losing Employment
According to The Hollywood Reporter:
The impacted teams are employees working on marketing for both film and television, as well as TV publicity, casting and development and corporate financial operations, a source familiar with the matter confirms to The Hollywood Reporter. While individual employees from those teams are impacted, and were notified Monday, no team itself is being eliminated, the source said.
This is part of Disney’s ongoing efficiency and cost-cutting measures, which were outlined in September, as it refocuses on streaming and pushes for profitability. The Burbank-based company employs 233,000 people globally and 171,000 in the U.S., per its most recent annual report.
What has stung many observers is that these layoffs come during a period of financial success. The layoffs arrive at a time when Disney is outperforming Wall Street expectations, creating a sense of disconnect. While the company reported over $3 billion in profit last quarter, hundreds of employees are now facing job losses.
As the company continues to retool its internal structure and focus on profitability, it has not confirmed whether more layoffs will follow.
Do you think mass layoffs are a necessary step for Disney to remain competitive? Or should the company explore other cost-saving measures, such as trimming executive compensation? We’d love to hear your thoughts—share your take in the comments.
