Disney has announced the layoffs of hundreds of employees globally, impacting crucial areas such as film production, television, and finance.
The reductions also hit the casting, content development, and corporate finance departments, with marketing teams in both film and TV divisions being affected.
These layoffs follow a wave of cuts in 2023, during which approximately 7,000 employees were let go as part of a $5.5 billion cost-saving initiative led by CEO Bob Iger.
Challenges Amid the Shift to Streaming
With around 233,000 employees worldwide, including 60,000 outside the U.S., Disney’s portfolio features major entertainment brands like Marvel, Hulu, and ESPN.
The company is feeling the strain as more consumers bypass cable TV subscriptions in favor of streaming platforms like Disney+. “As our industry undergoes significant change, we continuously seek ways to manage our operations effectively while preserving the creativity and innovation that our audience values,” a spokesperson stated to the BBC.
Disney emphasized that the layoffs were “surgical,” aimed at minimizing the number of affected employees, and assured that no entire teams would be disbanded.
In May, Disney reported earnings that surpassed expectations, with total revenue of $23.6 billion for the first quarter, marking a 7% increase compared to the same timeframe in 2024. This growth was attributed to an influx of new subscribers to its Disney+ streaming service.
Controversies Surrounding Creative Direction
However, Kathleen Kennedy‘s controversial decisions—especially the pivot towards “woke” themes in the iconic Star Wars franchise—have reportedly cost Disney hundreds of millions, undermining the legacies of both Star Wars and Indiana Jones. Once unthinkable, several recent Star Wars releases have now flopped at the box office.
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