Walt Disney Company confirmed to multiple media outlets on Monday (June 2nd) that the entertainment giant is laying off hundreds of employees, affecting its film, television, and corporate finance departments.
A spokesperson for Disney confirmed the news to various media, including CBS and The Hill.
According to the company spokesperson, the layoffs will involve Disney teams in film and television marketing, corporate financial operations, television publicity, casting and development departments, but assured that these teams themselves will not be eliminated.
“As our industry rapidly transforms, we continue to assess ways to effectively manage our business while delivering the top-notch creativity and innovation that Disney consumers cherish and expect,” the spokesperson said in an email to these media outlets. “As part of this ongoing effort, we have identified opportunities to enhance operational efficiency and are currently reducing a limited number of positions.”
Disney did not disclose the specific number of job cuts but mentioned that the layoffs will impact several business departments within the company.
“We are taking a targeted approach to minimize the number of affected employees,” the spokesperson added.
Earlier this year, Brendan Carr, Chairman of the Federal Communications Commission (FCC), announced on social media that he is investigating Disney for potential violations related to its efforts in promoting diversity, equity, and inclusion (DEI) initiatives that may conflict with the FCC’s equal employment opportunity regulations.
Disney, along with other companies, is adjusting their business strategies to address the trend of cable TV audiences shifting towards streaming platforms. In 2023, Disney laid off 7,000 positions as part of cost-saving measures to save $5.5 billion.
In March of this year, Disney also cut nearly 6% of employees from its ABC News Group and Disney Entertainment Networks, totaling less than 200 people.
The company’s latest financial report released in May exceeded Wall Street’s expectations, boosted by the unexpected success of the Disney+ streaming service and strong performance in the theme park business.
Following the announcement of the latest round of layoffs, Disney’s stock price dropped by 0.4% on Monday afternoon.