Disney is experiencing its fourth wave of layoffs in ten months, the largest to date. On Monday, June 2, several hundred employees around the world were let go, reports Deadline. The majority of the job cuts are in the television and entertainment sector, particularly in marketing, advertising, as well as casting and development. According to a spokesperson interviewed by the BBC, these layoffs come at a time when "the industry is transforming at a rapid pace." Specifically, Disney is supporting the migration of its customers from cable networks to subscription streaming. According to the company, these include:
Several names have been released, such as Eric Soulière, vice president of casting at 20th Television, and Tony Tompson, vice president of content development at Hulu Originals. The man who had worked for the streaming service for a decade is reportedly about to leave his position. Deadline reports that these announcements came as several Disney TV executives are leaving or have just left, but are not affected by the new wave of layoffs.
Heading for streaming?
When he took office in 2023, Bob Iger set the tone. The company's CEO aimed to reduce the company's costs by $7.5 billion with approximately 7,000 job cuts that year. Since then, the company has continued its momentum by restructuring Pixar and separating its division dedicated to creating exclusive content for Disney+. These budget cuts appear to have been beneficial to the company, which posted excellent financial results last quarter.
With revenue up 7% year-on-year, reaching $23.6 billion, and significant savings, the company saw its stock market capitalization rise again. Streaming performed particularly well, reinforcing its importance within the Walt Disney Company's activities. The platform reached 126 million subscribers worldwide, an increase of 1.4 million compared to the previous quarter.
Television, for its part, is struggling to keep up. Last March, Disney+ had already laid off nearly 6% of the ABC News and Disney Entertainment Networks workforce, or just under 200 people. As Variety notes, these layoffs are not on a par with those of 2023 since no services were eliminated.
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