Disney cuts hundreds in film, TV amid industry challenges

Disney has laid off several hundred employees across its film and television divisions as it faces significant industry challenges. The move is part of broader cost-cutting and restructuring efforts aimed at adapting to shifting consumer behaviors, the rise of streaming platforms, and declining revenues in traditional media. These layoffs reflect the ongoing transformation within the entertainment sector, as major studios like Disney reassess their operations to remain competitive in a rapidly evolving market.

Walt Disney Co is reducing its workforce by several hundred employees in its film and television departments, a move that reflects broader struggles within the entertainment sector.

According to media sources, the layoffs began on Monday and involve roles in marketing, publicity, casting, development, and corporate finance. This follows previous layoffs in March, when 200 jobs were eliminated from Disney’s ABC and entertainment television units. In total, Disney has eliminated over 8,000 positions in recent years in an effort to increase profitability.

The entertainment industry continues to undergo restructuring as financial pressures intensify.

For several years, Hollywood has been cutting costs, leading to steady declines in both production output and employment, as noted by Bloomberg. Studios are releasing fewer films to protect margins, especially with movie theater attendance still lagging behind pre-pandemic numbers. At the same time, audiences are moving away from traditional cable in favor of streaming, reducing income from advertising and cable distribution.

These developments are prompting major overhauls in the industry. Comcast is reportedly preparing to separate from several of its cable networks, such as MSNBC, USA, and CNBC, by the end of the year. Warner Bros. Discovery has reorganized to split its studio and cable divisions, possibly signaling a future sale of the latter. Paramount Global is also expected to make further job cuts as it proceeds with a merger with Skydance Media.

Disney, too, is making strategic adjustments to improve its financial position.

Though the company explored selling off its TV networks, including ABC, it ultimately opted to keep them. In early 2023, Disney announced the elimination of 7,000 jobs with a goal of saving $5.5 billion, a figure it later raised to $7.5 billion. Other leading media firms have also conducted large-scale layoffs.

As of the end of its fiscal year in September, Disney had around 233,000 employees, with the majority working full-time. Its most recent earnings report in May showed better-than-expected results, thanks to a spike in Disney+ subscribers and strong performance from its theme park operations.

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Source: business-standard‍