As Disney navigates through turbulent times, the entertainment giant is poised for another significant round of job cuts, primarily targeting its television division. Economic challenges, including a string of box office underperformers and the complex transition to streaming, have driven the company to make tough decisions.

In 2023, several Disney films, including Pixar’s “Elemental,” failed to capture audiences as expected, contributing to the financial strain. Alongside this, the shift from traditional TV to streaming services has been rocky, with Disney+ incurring substantial losses despite recent subscription price hikes aimed at curbing the red ink. Even the famed Disney theme parks have seen a drop in visitor numbers, a decline largely attributed to price increases and stiffer competition in the post-pandemic era.

In an effort to reduce expenses, Disney plans to cut approximately 140 jobs within its Disney Entertainment Television sector, which is about 2% of the workforce. This move, reported by Bloomberg UK, will see significant impact on ABC stations, NatGeo, and Freeform with NatGeo expected to lose as much as 13% of its staff. Additionally, cuts will extend to marketing and publicity teams.

CEO Bob Iger’s return in 2022 has been marked by aggressive cost-cutting measures to save the company billions. To date, his tenure has resulted in slashing over 8,000 positions and trimming $7.5 billion in yearly expenditures. In January, Pixar also confirmed impending layoffs, projecting a potential reduction of up to 20% of its workforce. Despite these figures, Pixar assured that final layoff numbers would hinge on future project demands and production schedules.

With the company planning an additional $2 billion in cuts during 2024, Iger has stated a pivot towards producing less but higher-quality content. “Quantity can sometimes detract from quality,” Iger remarked during a recent earnings call, reflecting a strategic shift within Disney’s production philosophy.

Disney enthusiasts, what do you think about these significant changes and their impact on your favorite entertainment and themes? Share your thoughts in the comments and let’s keep the conversation going!

Source: Billie Schwab Dunn