In a surprising turn of events today, Disney Entertainment Television (DET) has announced a significant reduction in its workforce, letting go of approximately 140 employees. These layoffs represent about 2% of the company’s workforce, reflecting the broader, ongoing strategy by The Walt Disney Company to cut operational costs and adapt to a rapidly changing media landscape. Despite these cuts, it’s important to note that no entire teams were disbanded, maintaining the structural integrity of DET’s various departments.
Notably, National Geographic bore the brunt of these layoffs, losing around 60 staff members, about 13% of its employees. Other divisions impacted include ABC Owned Television Stations, Freeform, the operations of Disney’s linear entertainment networks, and departments like Unscripted, Marketing, and Publicity. This move is part of a meticulously planned streamlining strategy that has been in the works for several months, aimed at ensuring DET’s agile response to market demands.
Nearly half of these job cuts took place in Burbank, CA, with the rest spread across New York and Washington, D.C. This follows a trend observed last May when Pixar Animation Studios also underwent a significant reduction of around 175 employees, or 14% of its staff. This was a direct consequence of The Walt Disney Company CEO Bob Iger’s revised financial model for streaming expenditure, affecting plans for several Disney+ series.
The industry’s shift from traditional pay-TV to digital platforms has strained ad revenue, pushing companies like Disney to reevaluate their business models. In his address to a Wall Street investor, Bob Iger emphasized a strategy of spreading programming costs by leveraging multiple platforms, including streaming, broadcast, and cable. “We’re doing that across the board, Disney Channel, ABC, National Geographic, and it’s working,” Iger stated, underscoring a balance between cost management and profitability.
Despite these strategic cost-cutting measures, Disney’s stock has seen a decline, trading at $93.79 this morning, down from its peak of $123.74 earlier in the year. These latest layoffs add to the 7,000 jobs Disney eliminated between March and May last year, which also led to the consolidation of several DET divisions, merging Disney TV Studios, Hulu, Freeform, and FX under one executive.
We invite you to share your thoughts on this development in the comments below. How do you think these changes will impact the future of Disney’s television and media strategy? Let’s get the conversation started!
Source: LaughingPlace.com
