In a season where challenges seem to be mounting for Disney, unfortunate news has come to light as the entertainment giant is now starting to lay off members of its workforce. This move comes amid plummeting attendance rates in the parks and a significant dip in the company’s stock value.
The initial round of layoffs has affected Disney Entertainment Television (DET), slashing approximately 140 positions, which represents about 2% of the division’s workforce. Among the hardest hit is National Geographic, which has seen about 60 layoffs, constituting roughly 13% of its team. Other divisions feeling the impact include ABC Owned Television Stations, Freeform, and various operational sectors of Disney’s linear entertainment networks, such as Unscripted, Marketing, and Publicity.
This wave of layoffs is part of a larger strategy aimed at streamlining operations to better align with the company’s evolving focus on digital and streaming platforms. Traditional pay-TV subscriptions continue to decline, and advertising revenue is shifting more towards digital platforms. Bob Iger, Disney’s CEO, has consistently emphasized the need for the company to adapt to these changing dynamics and maintain profitability across its various platforms.
The layoffs are a response to specific cost-cutting measures that Disney has been implementing to achieve at least $7.5 billion in reductions. Earlier in the year, Pixar Animation Studios also experienced a significant 14% staff reduction. Additionally, nearly half of the current layoffs are based in Burbank, with others located primarily in New York and Washington, D.C.
For those affected by these layoffs, this is undoubtedly a challenging time, and it highlights the larger economic struggles that Disney is facing. As the entertainment industry continues to evolve, with a significant shift toward digital consumption, Disney’s focus remains on consolidating its most profitable assets while scaling back on divisions that do not align with its long-term strategic goals.
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Source: Inside the Magic
