The Walt Disney Company may soon eliminate thousands of positions. Meanwhile, the company has asked some managers to target 20% in annual cost savings, Bloomberg first reported.
What We Know: According to the report, the savings could come through job eliminations and broader expense reductions. Furthermore, some operations, including theme parks, TV channels and the movie studio, will reportedly feel a disproportionate impact. Earlier this year, CEO Josh D’Amaro cut roughly 1,000 positions in April, hitting television, development and ESPN. Then, July cuts eliminated just under 100 Disney Entertainment Television jobs, including about a dozen at ABC News.
What’s At Stake: This will be the third round of reductions in less than a year for Disney. With technology continuing to be a large part in the re-investment for companies, Disney executives have not shied away from the possibility of layoffs. Disney President Dana Walden said last month at the Bloomberg Screentime conference that the company will consistently evaluate their organization’s structure. With technology setting their sights on business, she pledged that the company must survive and thrive and grow. Unfortunately cost cutting is a part of that growth.
What Remains Unclear: Right now, nobody knows how many of Disney’s employees could lose their jobs. Similarly, the timing of any cuts remains unknown.
What It Means: This would mark another major reduction in a year already full of them. In fact, Disney’s theme parks division laid off between 100 and 200 people just last week. Still, D’Amaro plans to reinvest savings into film and TV programming, technology, parks and cruises. For Disney’s TV operations, including ABC and ESPN, that likely means more change as traditional television revenue declines.
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