The Walt Disney Co. has initiated another significant round of layoffs, notifying several hundred employees both in the U.S. and internationally that their positions are being eliminated. This decision comes in the wake of an increasingly challenging economic environment for traditional television, as the company continues to adapt to shifting market dynamics.
Sources close to the Burbank entertainment giant have confirmed that these layoffs are impacting various departments, including film and television marketing teams, television publicity, casting and development, as well as corporate financial operations. This latest round of job cuts follows just three months after Disney laid off approximately 200 workers, which included positions at ABC News in New York and other Disney-owned entertainment networks.
At that time, the company disclosed a staff reduction of 6% due to declining TV ratings and revenue for traditional television, but they have not specified the exact number of workers affected in this current round of cutbacks.
These layoffs come after Disney's Chief Executive Bob Iger acknowledged the company's challenge in managing an overwhelming output of shows and movies in an effort to compete against industry leader Netflix. The surge in programming was initially spurred by the launch of Disney+ in late 2019, which resulted in an expanded workforce to accommodate a more extensive content pipeline. However, recognizing the need for a strategic shift, Disney has retrenched its approach, focusing on the creation of high-quality originals that align with the company's storied standards.
The impact of these layoffs is notable, as ABC News had previously shed around 40 employees last October, and the company’s television stations also experienced staff reductions. The ABC television network and Disney-owned entertainment channels have witnessed significant audience losses, as viewers increasingly migrate to streaming platforms such as Netflix, Paramount+, and even Disney+ itself.
As Disney navigates these complex challenges in the entertainment landscape, the focus remains on adapting to the evolving preferences of audiences while striving to uphold its legacy of high-quality storytelling.
