This marks yet another month of uncertainty for Disney employees as the entertainment giant continues reshaping its workforce.
The Walt Disney Company has begun another round of layoffs, eliminating roughly 300 jobs, primarily in human resources and technology, as new CEO Josh D’Amaro continues to restructure the company.
The cuts are expected to take place over several days, Deadline reported.
And the workforce reductions may not stop there.
Separately, Disney is planning a significant restructuring of its television operations that could result in hundreds of additional layoffs and the consolidation of divisions.
Also read: Microsoft cuts hundreds more jobs as restructuring deepens.
The Wall Street Journal first reported the TV overhaul, citing people familiar with the matter.
Senior executives are still working out the details of that plan, which may not be finalized until the end of the year.
The two developments are separate, but together they put hundreds more Disney jobs at risk or as already in the process of being eliminated.
Disney television business faces another overhaul
Disney Entertainment Television Chairman Debra O’Connell is leading the planned restructuring, according to The Wall Street Journal.
The changes are intended to organize Disney’s television operations more around its streaming customers than around individual brands developed during the traditional linear-TV era.
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Executives overseeing ABC Entertainment, 20th Television, Hulu Originals, and Freeform are among those expected to be affected by the changes, according to the report
The restructuring comes as Disney increasingly puts streaming at the center of its entertainment strategy.
At the company’s latest earnings call in August, D’Amaro said that during his first five months as CEO, he had been focused on making Disney “execute as one company around a unified strategy.”
He described the company’s “One Disney” operating model as a way to connect its businesses more closely and capture more value across its portfolio.
Disney is also moving Disney+ toward what D’Amaro called the “digital centerpiece” of its relationship with customers and has been working to integrate Hulu more deeply into the platform.
But that strategy is unfolding as the economics of traditional television come under increasing pressure.
Cord-cutting continues to reduce the cable and broadcast businesses that historically generated substantial profits for media companies.
And if the data is any indication, I’m hardly alone in changing how I watch television.
About 83% of U.S. adults now watch streaming services, compared with just 36% who subscribe to cable or satellite television at home, according to Pew Research Center.
Moreso, 55% stream without also subscribing to cable or satellite.
Disney is hardly the only traditional television company confronting that shift.
Broadcasters and station owners have also pursued consolidation and restructuring as the industry adjusts to changing viewing habits, a trend I have previously covered through developments involving Tegna and E.W. Scripps.
Disney cuts more jobs in the third round of layoffs this year.Gary Hershorn / Getty Images
Disney signals more cost reductions are coming
Disney management had already indicated that reducing expenses, including labor costs, remained part of its strategy.
During the August earnings call, CFO Hugh Johnston said the company was focused on improving productivity and efficiency to redirect resources toward growth.
More significantly for employees, Johnston said that work was ongoing as Disney looked at “meaningful reductions to cost, including labor and SG&A.”
D’Amaro similarly said Disney wants to operate in a more integrated way, with greater speed, discipline, and efficiency.
He argues that working more cost-effectively would free up capital for investment in content, technology, and new guest experiences.
On a recent visit to Disneyland in California, though, I was reminded that maintaining the existing guest experience matters too.
I found myself stuck aboard Mickey & Minnie’s Runaway Railway and later waiting through technical issues affecting The Little Mermaid attraction.
For visitors paying Disney’s increasingly premium prices, investment in its parks is not only about what comes next, but also about keeping what is already there running smoothly.
Disney layoffs have spread across the company
The roughly 300 latest cuts continue a series of workforce reductions since D’Amaro became CEO in March.
Disney has eliminated more than 1,500 jobs across three rounds of layoffs, including about 1,000 jobs in April, several hundred more in July, and roughly 300 in the latest round.
Hundreds more jobs could be at risk as Disney separately works on a restructuring of its television business.
In April, Disney eliminated roughly positions across areas including marketing, studios, television, ESPN, products, technology, and corporate functions.
Disney followed those cuts with another round in July that affected several hundred employees across Pixar, ESPN, Disney Entertainment Television, National Geographic, and other parts of the company.
These reductions also come as Disney works to bring Hulu and Disney+ closer together and reorganize around a more unified digital entertainment business.
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