Disney plans to lay off thousands: Report
What's the story
Walt Disney is reportedly planning to lay off thousands of employees as part of a major restructuring effort. According to Bloomberg, the entertainment giant has asked certain managers to target annual cost savings of 20%. The savings could come from both job cuts and expense reductions.
Reinvestment strategy
Cost-cutting measures will not impact all departments equally
The cost-cutting measures will not impact all departments equally. Some parts of the Disney business will bear a heavier burden than others.
However, the money saved from these cuts won't just be kept aside.
CEO Josh D'Amaro plans to reinvest a portion of those savings back into core areas like technology, film and television programming, theme parks, and cruise ship businesses.
Workforce impact
Disney's workforce reduction trend
Disney is a major global employer with some 231,000 people on its payroll at the end of the last fiscal year. However, it has been steadily downsizing as part of a broader effort to improve profitability.
In September, reports suggested that hundreds of employees from its human resources and technology divisions were laid off.
Earlier this year, about 1,000 roles were cut in April alone.
Industry shift
Job cuts across the entertainment industry
Disney isn't the only entertainment company tightening its belt amid changing market conditions. Other major media players like Netflix and Skydance have also cut jobs to reduce costs.
The move highlights how even the biggest brands in the industry must constantly evolve and make tough decisions to stay ahead in today's competitive landscape.