Walt Disney Co. is laying off several hundred employees across its film and TV businesses, cuts that underscore the entertainment industry’s contraction is far from over.
The staff reductions began Monday and are falling on employees in marketing, publicity, casting and development, along with corporate financial operations, according to the company.
Hollywood has been in a cost-cutting mode for several years, with production and employment in a downward spiral. Studios have reduced the number of films they release to boost profitability, particularly with theater attendance still below pre-pandemic levels. Consumers, meanwhile, are cancelling cable-TV subscriptions in favor of streaming services, a shift that crimps advertising and distribution revenue for operators of traditional channels.
The changes are prompting a massive reorganization of the business. Comcast Corp. plans to spin off most of its cable-TV channels, including MSNBC, USA and CNBC, by the end of this year. Warner Bros. Discovery Inc. has also completed an internal restructuring to separate its studio business and its cable-TV operations, which could facilitate a divestment of the latter division. More cuts are expected at Paramount Global as it pursues a merger with independent film and TV studio Skydance Media.
Disney, based in Burbank, California, had earlier weighed divesting its own TV networks including ABC, but ultimately decided to keep the assets. The company announced a retrenchment in February 2023, eliminating 7,000 jobs in a bid to cut expenses by $5.5 billion. Disney later increased that target to $7.5 billion. Competitors have also laid off thousands of workers.
The latest reductions follow roughly 200 job cuts across Disney’s ABC and entertainment TV networks in March. In all, the company has eliminated more than 8,000 positions in recent years as it seeks to improve profitability.
Monday’s layoffs were first reported by the entertainment industry publication Deadline. Disney had about 233,000 employees at the end of its last fiscal year in September, including 76% full time.
Shares of Disney were little changed $112.92 at 3:31 p.m. in New York.
This story was originally featured on Fortune.com
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