Disney announces entertainment division layoffs amid streaming push
The Walt Disney Company announced another round of job cuts, as several hundred employees worldwide are losing their positions, Deadline reported. The layoffs are primarily within the Disney Entertainment division, including marketing positions for movies and TV, as well as publicity for television casting and development. Jobs in the company’s finance department are also being eliminated.
“As our industry transforms at a rapid pace, we continue to evaluate ways to efficiently manage our businesses while fueling the state-of-the-art creativity and innovation that consumers value and expect from Disney,” a spokesperson said in an email to CBS News on Monday, June 1. “As part of this ongoing work, we have identified opportunities to operate more efficiently and are eliminating a limited number of positions today.”
The exact number of personnel to be laid off wasn’t confirmed.
Industry-wide shift toward streaming services
Disney and its competitors are adapting their business strategies as more people shift away from traditional cable TV, opting instead to watch content on streaming services.
Disney’s portfolio spans multiple verticals, including sports, news, movies, TV, and streaming, encompassing ESPN, ABC Entertainment, ABC News, Marvel, Disney+, and Hulu.
The entertainment company announced restructuring plans in 2023, which included laying off 7,000 employees at the time.
Ongoing layoffs follow strong financial quarter
The exact number of layoffs in the newest round is currently unknown. This is the fourth round of layoffs for The Walt Disney Company in less than a year. In March, ABC News Group and Disney Entertainment Networks laid off 200 employees.
The announcement of layoffs follows the company’s $23.6 billion in revenue for Q2, a 7% increase compared to the same quarter last year, according to CBS News.
Disney World employees face legal employment hurdles
Meanwhile, the company’s theme parks are also losing employees. Last month, the Supreme Court ruled the Trump administration could end Temporary Protected Status for 350,000 Venezuelans.
Straight Arrow News reported that Disney officials sent an email to employees at Walt Disney World, the company’s Florida resort. The message, directed at workers residing in the U.S. under the TPS program, stated that they would be placed on leave unless they provided updated documents proving they are still legally authorized to work in the U.S.
Ella Rae Greene, Editor In Chief
