Disney has initiated another round of layoffs within its corporate structure amid a prolonged period of cost-cutting in Hollywood. This latest workforce reduction comes as the company continues to trim budgets and streamline operations.
Furthermore, in Disney’s latest round of layoffs, details remain unclear regarding which corporate-level functions will be most affected, or whether the cuts will impact staff in Burbank or other locations. A Disney representative did not provide specifics on the number of employees involved or the scope of the cost-cutting efforts.
A rep for the company stated, “We continually evaluate ways to invest in our businesses and more effectively manage our resources and costs to fuel the state-of-the-art creativity and innovation that consumers value and expect from Disney. As part of this ongoing optimization work, we have been reviewing the cost structure for our corporate-level functions and have determined there are ways for them to operate more efficiently.”
Notably, under the leadership of Bob Iger, Disney, like many other Hollywood companies this year, has implemented layoffs across several divisions. In May, Pixar underwent a significant restructuring, cutting around 14 per cent of its workforce approximately 175 employees as the studio shifted focus away from series production for Disney+.
Disney CFO Hugh Johnston said, “We were losing $1 billion a quarter not all that long ago and now we’re making money and our expectation is we’re going to continue on that journey to making more money to get to and then ultimately well surpass the double-digit margins that we’ve talked about.”