Disney Cuts Hundreds of Jobs in Film and TV Divisions Amid Industry Downturn

Disney has initiated a significant round of layoffs in its film and television divisions, a move that underscores the ongoing contraction in the entertainment industry. The layoffs, which began this week, affect employees in various departments including marketing, publicity, casting, development, and corporate finance. This action is part of a broader trend of cost-cutting measures across Hollywood, where the number of films produced and employment levels have been in decline for several years.

The entertainment industry has been grappling with reduced profitability, leading major studios to decrease the number of films released, especially given that theater attendance remains below pre-pandemic levels. Additionally, the shift in consumer preferences from traditional cable subscriptions to streaming services has impacted the revenue streams of conventional television networks, affecting their advertising and distribution income.

These changes have prompted major corporations to undertake substantial restructuring efforts. Comcast is planning to spin off a significant portion of its cable television channels by the end of this year. Warner Bros. Discovery has completed an internal reorganization, separating its studio operations from its cable television business, which may facilitate the potential sale of the latter. Paramount Global is exploring a merger with the independent film studio Skydance Media, a move that is expected to result in further job cuts.

Disney had previously considered divesting its own television networks but ultimately decided to retain these assets. In February 2023, the company announced plans to lay off 7,000 employees to reduce expenses by $5.5 billion, a target that was later increased to $7.5 billion. Competitors have also implemented significant layoffs, totaling thousands of jobs.

This latest round of layoffs follows a previous reduction of approximately 200 jobs at Disney's ABC and Entertainment Television networks in March. Over the past few years, Disney has collectively laid off over 8,000 employees in an effort to enhance profitability. As of September last year, Disney employed around 233,000 people, with 76% of these positions being full-time.