Disney fires hundreds in 4th layoff round in 10 months
What's the story
The Walt Disney Company has begun a new round of layoffs, affecting hundreds of employees across its global operations.
The cuts primarily affect divisions within Disney Entertainment, including film and television marketing, publicity, casting and development, as well as corporate finance.
This is the fourth and largest wave of job cuts in the last 10 months.
Pivot
Layoffs reflect strategic shift toward streaming services
The latest layoffs at Disney are part of a broader strategy to shift toward streaming services, amid declining viewership of traditional television.
Earlier this year, the company had already cut nearly 6% of its workforce in ABC News Group and Disney Entertainment units.
Despite these cuts, Disney's financial performance has remained strong, with its recent earnings report beating Wall Street expectations due to strong performances from its streaming services and theme parks.
Corporate response
Disney's spokesperson addresses layoffs
A Disney spokesperson responded to the layoffs by saying, "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."
The restructuring leaves employees in Los Angeles uncertain about their future.
While entire teams are not being removed, losing experienced staff in marketing, casting and development raises concerns about maintaining institutional knowledge within the company.
Industry impact
Disney's challenges mirror broader trends in traditional media
Disney's difficulties reflect wider issues faced by traditional media companies as audiences shift from cable TV to streaming platforms.
This has forced legacy studios to rethink their business models.
The firm's cost-cutting measures, including the elimination of 7,000 jobs in 2023 with a goal of saving $5.5 billion, highlight its efforts to adjust to this changing landscape.
Others
Over 300 Microsoft employees also lost jobs
Speaking of layoffs, tech giant Microsoft has fired 305 employees working at its office in Washington DC. They account for less than 1% of its total headcount.
These firings come less than three weeks after the company laid off over 6,000 peeople across its global workforce.
Describing the reason behind the latest move, Microsoft said in its official statement that it is making "organizational changes necessary to best position the company for success in a dynamic marketplace."