On November 3rd, several foreign media reported that Disney is planning to lay off thousands of employees.
Sources familiar with the matter told Bloomberg that Disney has asked some executives to set annual cost reduction targets of 20%. The savings could come from layoffs and expense cuts. As the discussion was private, these sources requested to remain anonymous.
As of the end of the previous fiscal year, the company had 231,000 employees worldwide.
According to sources, some of Disney’s businesses, including theme parks, television channels, and film studios, will be disproportionately affected. CEO Josh Dramo plans to reinvest some of the saved funds into film and TV production, technology, as well as theme park and cruise operations.
Previously, the company promised that adjusted earnings per share would experience double-digit growth for this fiscal year.
In recent years, Disney has cut billions of dollars in costs and laid off thousands of employees. All departments, including ABC, Pixar, ESPN, film studios, and the experience division, have been affected. The Wall Street Journal reported last month that Disney plans to restructure its television division and reduce the number of employees in its legal and global affairs departments.
In the past two years, Disney has laid off employees several times: in 2023, 7,000 positions were cut, last year hundreds of people were laid off, and in April this year, about 1,000 positions were eliminated.
Large entertainment companies such as Netflix, Sony Pictures Entertainment, Paramount, and Warner Bros. have also laid off employees due to a decline in traditional television revenue and a slowdown in the growth of streaming users. In addition, they must also deal with the challenges posed by an increasing number of viewers turning to social media, online videos, and streaming services supported by technology giants like Amazon and Apple.
Last month, Disney President Dana Walden said, "We need to continuously evaluate our company's organizational structure and size. Tech companies have already turned their attention to our business. We must survive, grow, and thrive, and that is exactly what we need to do."
