The American entertainment corporation Walt Disney is preparing for a new wave of large-scale staff reductions within its spending optimization program. Management has tasked individual divisions to find opportunities to substantially reduce annual expenses, which could lead to the dismissal of thousands of employees.
Bloomberg reports this, citing sources familiar with internal discussions. The agency's article was published on November 3 in The Japan Times.
According to the sources, some Disney executives have been tasked with finding opportunities to cut annual expenses by 20%. This is planned to be achieved both by reducing headcount and through cutting other operational expenses.
The objective applies to individual executives and divisions, not to reduce overall expenses or staff across the entire corporation by 20%.
The new savings program is expected to unevenly impact Disney's different business areas. Changes may hit television networks, movie production, and the theme parks division.
Disney's chief executive said part of the savings will be directed to priority business areas such as film and TV production, technology projects, theme parks, and cruise business.
Thus, the new program implies not only cost cutting, but also the reallocation of financial resources toward areas where Disney sees opportunities for further growth.
The exact number of employees who may be let go is currently unknown. The timing of layoffs and the final list of affected units have not been made public.
A Disney representative declined to comment on the information about upcoming reductions. This means the plans were revealed by journalists from sources inside the company, not an officially announced workforce reduction program.
At the end of the previous fiscal year, Disney had about 231,000 employees globally, cutting thousands of jobs and billions of dollars in expenses in recent years.
Earlier optimization waves hit virtually all major business areas, including ABC, Pixar, ESPN, film production, and entertainment.
The new measures are planned amid structural changes in the global entertainment industry. Traditional television is losing audiences and ad revenue, while streaming subscriber growth slows.
Meanwhile, media companies face growing competition from social networks, online video platforms, and streaming services of tech giants Amazon and Apple.
These shifts force other major players, including Netflix, Sony Pictures Entertainment, Paramount, and Warner Bros., to also cut spending and review organizational structures.
The Wall Street Journal earlier reported Disney preparing a reorganization of its TV business and potential reductions in legal and communications departments.
The goal is to simplify management structure and adapt to a landscape shaped increasingly by digital platforms and streaming.
Disney's president lately stressed the need to constantly review the organization's structure and headcount in line with industry tech shifts.
Despite the new cost program, Disney maintains ambitious financial goals. It had expected double-digit adjusted EPS growth this year.
Overall, the cutbacks are meant to support profitability while funding new projects, though the ultimate scale remains unclear until final decisions are made.
