Disney Hit Hard: Thousands Face Layoffs Amid CEO’s New Strategy!

In a significant move on Wednesday, Disney Entertainment Television announced the layoff of approximately 140 employees. According to Variety, these cuts represent about 2 percent of the workforce within the unit, marking a substantial shift in the company’s employment strategy.

The layoffs have significantly impacted various departments, including National Geographic, locally owned television stations, Freeform, and network teams focused on marketing and publicity. National Geographic, acquired by Disney in 2019, was hit hardest, with 60 employees losing their jobs. This division has experienced the most substantial reduction among those affected by Disney’s recent layoffs.

Disney’s CEO, Bob Iger, has publicly stated that the company is refocusing its strategy, especially concerning its pay-TV content. He has mentioned that Disney plans to reduce its investment in content targeting traditional networks, as there has been an overemphasis on streaming content in recent years. This shift is part of a broader $7.5 billion plan to cut costs across the company.

Maybe it’s not that plain and simple, but after agreeing to spend millions on two more Avengers movies, it's disappointing Disney isn't supporting those making programming about our actual planet.https://t.co/s5BulsCK87

— The A.V. Club (@TheAVClub) July 31, 2024

Earlier this year, Disney’s cost-cutting measures also affected Pixar Animation, where 175 workers were laid off in May. Additionally, the company reduced its global workforce by about 220,000 employees last year, showcasing a persistent trend of workforce reductions as Disney seeks to streamline operations and focus on more profitable ventures.

The bulk of these recent cuts will primarily affect the Los Angeles region, with some impacts in New York City and Washington, D.C., as reported by Deadline. This geographic focus underscores the company’s efforts to realign its resources in major media markets.

According to a report in the New York Post, Disney’s layoffs are far from over. The report indicates that ABC, one of Disney’s major networks, is expected to undergo significant changes, including potential layoffs at “Good Morning America.” The Post cites unnamed sources, suggesting that the show must achieve $19 million in cuts by the end of Disney’s fiscal year on September 30.

Notably, the Post report highlights that the anticipated cuts at “Good Morning America” will likely target behind-the-scenes staff rather than on-camera hosts. A former ABC News executive, quoted by the Post, criticized the show, stating, “‘GMA’ is not doing quality stuff.” The source further elaborated, “There’s not a lot of taped pieces. It’s more live hits, and there’s a lot of [segments] selling stuff in studio.” This criticism suggests that the show may need to rethink its content strategy to maintain its competitive edge.

"Disney was hit with layoffs"?

Who hit them?

— GESSopines 🇵🇦🇺🇲 (@GESSopines) July 31, 2024

Additionally, ABC News is expected to implement a hiring freeze, leaving open positions unfilled, according to sources cited by the Post. This decision reflects a broader trend within Disney to curtail expenses and realign its workforce to fit the company’s evolving priorities.

These layoffs come at a challenging time for Disney as the company navigates a rapidly changing media landscape. The shift from traditional television to streaming services has prompted many media companies to reassess their strategies and resource allocations. Disney, with its vast array of content and networks, is no exception, as it seeks to balance its traditional media operations with the growing demand for digital content.

As Disney continues to implement its cost-cutting measures, the impact on its workforce and operations remains a topic of keen interest and concern within the industry. The company’s ability to adapt to changing market dynamics while maintaining its reputation for quality entertainment will be closely watched in the coming months.

ABC News, ‘GMA’ staffers brace for layoffs as Disney demands budget slashes: sources https://t.co/e6rFWGkp5d pic.twitter.com/ZYX4pKFUcG

— New York Post (@nypost) July 31, 2024

In summary, Disney’s recent layoffs are part of a strategic move to reduce costs and refocus its content strategy, with significant impacts on its workforce and operations. As the company continues to navigate the evolving media landscape, these changes highlight the challenges and opportunities facing Disney in maintaining its position as a leader in the entertainment industry.