The world-famous entertainment company Walt Disney has officially announced that it is soon going to kick-start layoffs across the globe. The announcement came to light on the 2nd of June, and hundreds of jobs are expected to be affected by the layoffs. The reports suggest these freshly announced layoffs may impact employees who are currently working in the marketing, corporate finance, publicity, casting, and development departments of Walt Disney. If you are someone who wants to know more about the Disney layoffs, the following article is for you. It brings you all the information you need, including why the layoffs are being announced.
Why Did Disney Announce Layoffs This Year?
According to the reports, the layoffs announced this Monday are a part of Disney’s ongoing cost-cutting program. With these layoffs, Walt Disney is aiming to focus on adaptation to the rapidly evolving entertainment industry. According to the reports, the company is now going to shift its focus more toward its online streaming platform, Disney+, amid rapidly changing consumer preferences. A spokesperson from the company explained that the decision to conduct a layoff is never easy. However, he further added that the rapid pace with which the entertainment industry is transforming requires them to operate with more efficiency.
Who did The Previous Disney Layoffs Affect?
This is not the first time Disney has announced it is going to lay off employees. CEO Bob Iger’s previously outlined cost-cutting plan included laying off over 7,000 jobs over several rounds that began back in 2023. The layoffs announced previously affected all its subsidiaries, including Pixar, ABC News, Freeform, National Geographic, and Disney Entertainment Networks. In the month of September back in 2024, Disney laid off over 300 corporate jobs from departments like human resources, legal, and communication. Another layoff in the month of March this year impacted 200 jobs, including around 6% of ABC News and Disney’s other TV division’s workforce.
Who Are The Disney Executives Reportedly Being Affected By The Layoffs?
According to a report coming from Deadline, the Walt Disney layoffs are going to impact several Disney executives. Sources suggest Eric Souliere, VP of Casting for 20th Television, the one who was responsible for the casting of Ryan Murphy’s American Horror Story and 9-1-1 series, might have to part ways. Another name coming up is Tony Tompson, VP of Content Development at Hulu Originals. Lower Development executives are going to be impacted by the layoffs. According to the reports, all the other names who parted their ways today did so for reasons other than the layoffs, such as an expired contract.
How Did Walt Disney Perform Financially In The Second Quarter This Year?
Despite the decision to cut costs through layoffs, Walt Disney showcased pretty good financial performance in the second quarter of this year. According to the earnings report announced recently, the company’s revenue has reached $23.6 billion, which is a 7% year-on-year increase. The company has also reported a rise in direct-to-consumer operating profit as it went from $289 million to $336 million. In addition to that, Walt Disney’s online streaming platform, Disney+, managed to grab 126 million new subscribers during the first quarter. This indicates that the company is succeeding in the streaming market despite the rapidly growing competition.
Troubles For TPS Employees Working At Walt Disney World Increase
Apart from the layoffs, the employees who hold Temporary Protected Status and are working at the Walt Disney World theme park are also in trouble. They have been asked to submit work permits after the Supreme Court of the US upheld the Trump administration’s decision to end TPS protection of over 350,000 Venezuelan employees.
