Disney Cuts Costs: Hundreds of Employees Laid Off in Latest Layoff Wave

Disney is cutting several hundred jobs across its global operations, affecting staff in film, television, and finance. This decision comes as the company faces challenges from a shifting entertainment landscape. More viewers are leaving cable TV to embrace streaming services, putting pressure on traditional media.

A Disney spokesperson explained that the company is adapting to rapid industry changes while aiming to sustain the creative spirit that fans expect. This round of layoffs follows earlier cuts in 2023 when around 7,000 employees lost their jobs as part of a cost-saving strategy by CEO Bob Iger, aimed at saving $5.5 billion.

The layoffs will impact various teams, including those involved in marketing, casting, and corporate finance. Despite the cuts, a company representative noted that no entire teams would be disbanded, stressing a careful approach to minimize layoffs.

Disney, which employs 233,000 people worldwide, owns several popular brands, including Marvel, Hulu, and ESPN. Despite these challenges, the company recently reported stronger-than-expected earnings. In May, Disney posted a revenue of $23.6 billion for the first quarter of 2024, a 7% increase compared to the same period the previous year. This growth was largely driven by an influx of new subscribers to its Disney+ streaming service.

In terms of recent releases, Disney has had a mixed bag. Films like “Captain America: Brave New World” and the live-action “Snow White” generated buzz but received mixed reviews, with “Snow White” underperforming at the box office. Conversely, “Lilo & Stitch” broke records during the Memorial Day weekend, raking in over $610 million globally since its debut.

As the entertainment giant navigates these changes, it reflects a broader trend in the industry. A recent survey found that major players in media are re-evaluating their strategies amid rising competition in streaming. Experts suggest that successful companies will be those that can innovate while managing costs effectively.

Disney’s position in the market underscores the importance of adapting to consumer preferences. The rise of streaming platforms illustrates the shifting landscape of entertainment, and how companies like Disney must continuously evolve to stay relevant.



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