Many workers at Disney discovered they were unemployed on Monday as the company aims to redirect its focus towards expanding its streaming services.
Multiple global teams are impacted by these layoffs, encompassing areas such as film and TV marketing, television publicity, and casting and development.
No squads were entirely knocked out, and someone inside
shared with the Los Angeles Times
ABC News and ESPN were mostly unaffected by the layoffs.
Despite significant declines in viewership for both the ABC television network and Disney-operated entertainment channels due to growing consumer preference for streaming services, the news channel continues to maintain a robust audience base for its broadcasts.
ABC’s prime-time lineup has been notably affected, with just three programs ranking within the Nielsen’s top 20 — Monday Night Football, Sunday Night Football, and High Potential, as reported by the Los Angeles Times.
Meanwhile, ESPN dodged the axe as it gets ready for the launch of its own streaming platform.
The precise count of Disney workers let go on Monday is still unknown.
However, this marks the fourth and biggest layoff wave at the renowned entertainment firm over the past 10 months.
Deadline reports.
Upon his return as CEO in 2023, Bob Iger took the lead by setting an ambitious target for the company: achieving at least $7.5 billion in cost cuts.
At minimum, 7,000 positions have been cut.
These reductions persisted into early March of this year.
When approximately 200 employees were let go
– accounting for approximately 6% of the employees at ABC News Group and Disney Entertainment Networks.
The firm has combined certain positions, closing down ABC Signature previously and incorporating its activities into 20th Century.
Earlier this year, ABC News integrated both 20/20 and Nightline into a single unit. Additionally, the network combined its scripted drama and comedy divisions for ABC and Hulu Originals under one operational structure.
This led to approximately 30 layoffs at Disney Entertainment Television, following other staffing reductions last year which affected around 140 employees within the division—equivalent to about two percent of the entire company’s workforce.
According toDeadline, those reductions primarily impacted workers at National Geographic.
However, the layoffs that occurred on Monday took place only a few weeks after Disney announced their second-quarter earnings which exceeded expectations.
Iger declared last month that the corporation generated $23.6 billion in revenue for the quarter ending on March 29, marking a rise of seven percent from the corresponding period the previous year.
Pre-tax earnings amounted to $3.1 billion, an increase of $2.4 billion compared to the previous year.
A significant portion of the revenue growth was driven by streaming services, as evidenced by Disney’s direct-to-consumer segment experiencing an increase in operating income from $289 million to $336 million.
Disney additionally gained an unforeseen advantage from its ventures, such as its theme parks and cruise lines.
Iger expressed his desire to generate fresh employment opportunities within the realm of Disney experiences during an annual shareholders’ meeting earlier this year.
Last month, he shared with shareholders his continued optimism regarding Disney’s present fiscal year forecasts, anticipating an increase of 16 percent in earnings per share relative to the previous year.
Variety reports.
By the close of the fiscal year, Iger anticipates witnessing a doubling in operating income for both its entertainment and sports divisions. Additionally, an uptick of between six to eight percent in operational revenues from the company’s theme parks and merchandise sectors is projected by him.
However, after the announcement of job cuts on Monday, the firm experienced a decline in its stock price, closing 9 cents lower at $112.95.
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