Disney says it is laying off several hundred more people around the world, with workers in its film, television and finance departments impacted. The entertainment giant has been under pressure as viewers move away from cable TV subscriptions in favour of streaming platforms. "As our industry transforms at a rapid pace, we continue to evaluate ways to efficiently manage our businesses while fuelling the state-of-the-art creativity and innovation that consumers value and expect from Disney," a spokesperson told the BBC. The latest job cuts follow major layoffs announced in 2023, whenaround 7,000 workers werelet go as part of a drive by chief executive Bob Iger to save $5.5bn (£4.1bn). The cuts will impact multiple teams including marketing departments for its film and television units. Workers in Disney's casting and development and corporate finance departments will also be affected. "We have been surgical in our approach to minimise the number of impacted employees," said a spokesperson. The company also said that no teams will be closed down entirely. The California-based firm employs 233,000 workers, with just over 60,000 of those based outside the US. Disney owns a host of companies across the entertainment industry including Marvel, Hulu and ESPN. The firm reported stronger than expected earnings in May, with overall revenue of $23.6bn for the first three months of the year. That was a 7% increase from the same period in 2024. It said the growth was fuelled by new subscribers to its Disney+ streaming service. The company has released a number of new films this year including Captain America: Brave New World and Snow White. The live action remake of the iconic Snow White animated film did not perform as well as expected at cinemas,after facing a number of negative reviews. But Disney's latest release, Lilo & Stitch, broke box office records in the US for the Memorial Day holiday weekend. The animated film has seen global ticket sales of more than $610m since its release in May, according to industry data firm Box Office Mojo.
Disney makes hundreds more layoffs as it cuts costs
TruthLens AI Suggested Headline:
"Disney Announces Additional Layoffs Amid Industry Transformation"
Bbc News
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TruthLens AI Summary
Disney has announced additional layoffs affecting several hundred employees globally, primarily in its film, television, and finance departments. This decision comes amid ongoing challenges for the company as viewership shifts from traditional cable subscriptions to streaming platforms. A company spokesperson mentioned that these layoffs are part of a broader strategy to manage the business more efficiently while continuing to foster creativity and innovation, which Disney's consumers expect. This latest round of job cuts follows significant layoffs earlier in 2023, where approximately 7,000 workers were let go as part of CEO Bob Iger's initiative to save $5.5 billion. The affected teams include marketing units within the film and television sectors, as well as departments responsible for casting, development, and corporate finance. Importantly, Disney clarified that while layoffs are occurring, no entire teams will be disbanded, indicating a targeted approach to minimize the impact on its workforce, which totals around 233,000 employees, with over 60,000 based outside the United States.
Despite these layoffs, Disney reported stronger-than-expected earnings in May, with revenues reaching $23.6 billion for the first quarter of the year, marking a 7% increase compared to the same period in 2024. This growth has been attributed to an influx of new subscribers to its Disney+ streaming service. The company has also released several films this year, including 'Captain America: Brave New World' and the live-action remake of 'Snow White', which, despite facing critical backlash, did not significantly impact the company's overall performance. In contrast, Disney's recent animated film 'Lilo & Stitch' has achieved remarkable success, setting box office records during the Memorial Day weekend and accumulating global ticket sales exceeding $610 million since its debut in May. These developments reflect Disney's ongoing efforts to adapt to a rapidly evolving entertainment landscape while navigating financial pressures and changing consumer preferences.
TruthLens AI Analysis
Disney's recent announcement regarding additional layoffs highlights the company's ongoing struggle to adapt to a rapidly changing entertainment landscape. The layoffs, which will affect several hundred employees in various departments, indicate a significant shift in Disney's operational strategy, driven by the rising popularity of streaming services and a decline in traditional cable subscriptions.
Impact of Layoffs on Company Image
The decision to lay off employees is a reflection of the pressures that Disney faces in the current market. With over 7,000 layoffs already occurring earlier in 2023, this move may further contribute to a negative perception of the company among consumers and employees alike. While Disney's spokesperson emphasized a "surgical" approach to minimize impact, the fact remains that job losses can erode employee morale and public trust in the brand.
Financial Context and Market Response
Despite the layoffs, Disney reported stronger-than-expected earnings in May, showing a 7% revenue increase largely thanks to new subscribers to its Disney+ service. However, the mixed performance of recent film releases, such as "Snow White," suggests that the company's creative output is not meeting consumer expectations consistently. This dichotomy could lead to uncertainty among investors, potentially affecting Disney's stock prices and market position.
Public Sentiment and Community Response
The layoffs may resonate differently across various demographic groups. Employees and fans of Disney may express disappointment or concern, while investors might view the cuts as a necessary step towards financial stability. The article may be seen as an attempt to frame the layoffs as a strategic move rather than a sign of deeper issues within the company.
Connections to Broader Trends
This news aligns with a broader trend in the entertainment industry, where many companies are reevaluating their business models in response to the shift towards streaming. The layoffs could be interpreted as a proactive measure to stay competitive in this evolving market. However, they also raise questions about job security and the future of traditional media.
Potential Economic and Political Implications
The layoffs could have ripple effects on the economy, particularly in California, where Disney is a major employer. A significant number of job losses could contribute to local economic downturns, affecting consumer spending and community stability. Politically, the situation might prompt discussions about labor rights and corporate responsibility in the entertainment sector.
Trustworthiness of the Article
The article presents a factual account of Disney's layoffs, supported by statements from company representatives and financial data. However, it could be interpreted as having a slight bias towards minimizing the negative impacts of these layoffs by emphasizing the company’s financial performance and strategic intentions.
In summary, this news piece aims to convey a narrative that frames the layoffs within a context of necessary adaptation and financial prudence, while also acknowledging the potential negative sentiment arising from such actions.