Walt Disney eyes thousands of job cuts, asks managers to target 20% savings

The job cuts are expected to affect some of Disney's operations more than others, including its theme parks, television channels and movie studio.

In Short

• Disney plans thousands of job cuts to save costs
• Cuts to affect theme parks, TV channels, studios
• CEO aims to reinvest savings in key business areas

Walt Disney is moving towards thousands of job cuts as the entertainment giant looks to reduce costs, with some managers asked to target 20% in annual savings, according to a Bloomberg report.

The proposed savings could come from eliminating jobs as well as reducing other expenses, Bloomberg reported, citing people familiar with the matter who spoke on condition of anonymity because the discussions are private.

The cuts are expected to affect some of Disney's operations more than others, including its theme parks, television channels and movie studio, the report said.

Chief Executive Officer Josh D'Amaro plans to reinvest a portion of the savings in film and television programming, technology, theme parks and the company's cruise ship businesses, according to the report.

The development comes as Disney has promised double-digit growth in adjusted earnings per share in the current financial year. A company representative declined to comment on the proposed job cuts, Bloomberg reported.

DISNEY HAS ALREADY CUT THOUSANDS OF JOBS

Disney has undertaken significant cost-cutting measures in recent years, eliminating thousands of positions and reducing costs worth billions of dollars across its businesses.

The reductions have affected several divisions, including ABC, Pixar, ESPN, the film studio and the experiences unit. Disney had 231,000 employees worldwide at the end of its previous financial year, according to Bloomberg.

The Wall Street Journal had reported on October 1 that Disney was planning a restructuring of its television division, along with job cuts in its legal and global affairs unit.

ENTERTAINMENT INDUSTRY FACES PRESSURE

Disney is not the only entertainment company looking to reduce costs. Netflix, Sony Pictures Entertainment, Paramount and Warner Bros. have also cut jobs amid pressure on traditional television revenues and slower growth in streaming subscribers, Bloomberg reported.

Entertainment companies are also facing competition from social media platforms, online video services and streaming platforms backed by technology companies such as Amazon and Apple.

At the Bloomberg Screentime conference in Los Angeles last month, Disney President Dana Walden said companies needed to regularly assess their organisational structure and size.

“There is a need to constantly evaluate how you’re structured and how big is the organization,” Walden said, adding that technology companies had set their sights on the entertainment business.

“We must survive and thrive and grow, and that’s what we’re going to do,” she said.

- Ends