Facing an uncertain future, Disney is planning a new round of job cuts, this time targeting its TV division. The entertainment giant has been grappling with multiple challenges recently, from box office disappointments to declining TV viewership and an uneven transition to streaming.
Disney’s financial woes have been exacerbated by its Disney+ streaming service, which has been losing money. Although subscription cost increases have helped curb some losses, the company’s theme parks have also underperformed. Experts attribute this decline in visitors to post-pandemic price hikes and increased competition.
New Round of Job Cuts
Disney is now aiming to reduce costs by eliminating approximately 140 jobs, or about 2 percent of staff, at Disney Entertainment Television, according to Bloomberg UK. The company’s ABC stations and networks like NatGeo and Freeform are expected to be hardest hit by these changes, with NatGeo allegedly set to lose 13 percent of its staff. Jobs in Disney’s marketing and publicity teams are also reportedly on the chopping block.
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Since Disney CEO Bob Iger’s return to the company in 2022, he has cut billions of dollars in costs and eliminated over 8,000 positions as part of a plan to slash $7.5 billion in annual expenses. In January, a Pixar representative confirmed that the Disney-owned animation studio would undergo layoffs in 2024, potentially reducing staff numbers from 1,300 to under 1,000 within a few months. However, Pixar disputed these figures, stating that the final number of cuts would depend on production schedules and future project needs.
Financial and Strategic Adjustments
In November, Disney announced plans to slash costs after losing almost $1 billion due to box office flops in 2023. During an earnings call, CEO Bob Iger revealed that the company would cut an additional $2 billion in expenses in 2024. This followed a previous announcement that Disney would slice $5.5 billion in the coming year, along with thousands of layoffs. At that time, Iger indicated there were no further plans for job cuts.
In the earnings call, Iger emphasized that Disney would produce less content in 2024, focusing on quality over quantity. “I’ve always felt that quantity can be actually a negative when it comes to quality,” he said. “That’s exactly what happened. We lost some focus.”
Future Prospects
Despite these setbacks, Disney is working to stabilize its operations and financial health. The company is seeking to streamline its operations, reduce costs, and focus on producing high-quality content. The goal is to navigate through these turbulent times and position itself for a stronger future.
While the path ahead remains challenging, Disney’s leadership is committed to making the necessary adjustments to ensure the company’s long-term success. As the entertainment landscape continues to evolve, Disney aims to adapt and thrive in a competitive and ever-changing market.