Disney Layoffs To See 150 Film Studio Employees Out Of Work As Media Company Focuses More On Digital Distribution
By Carey Vanderborg | April 9, 2013 10:38 PM EST
Citing sources close to the situation, the report said the layoffs will be particularly focused on home entertainment as the company adjusts to industry-wide declines in DVD sales. The Burbank-based company is reportedly focusing more on digital distribution, which requires fewer people.
While the number of pink slips in the works is less than 5 percent of the studio staff, other areas expected to see cuts include the technology and distribution division. As the multinational mass media corporation prepares to release just 10 films this year -- five fewer than in 2009 – a smaller staff is needed, both for managing the distribution, as well as marketing.
This could be just the beginning of a series of cuts for Disney, as the company completes an internal audit looking for areas where it could make cost cuts to adjust to shifting business models.
According to CNBC, Lucasfilm last week, shut down its traditional video game production and laid off about 150 people. Additionally, Disney Interactive laid off about 50 employees last year as it shut down a Texas game studio.
But while layoffs might seem like a bad business indicator, in Disney’s case, it is quite the opposite. As Disney shares are trading at an all-time high and with the company reporting record results in its last fiscal year, sources believe that CEO Bob Iger and CFO Jay Rasulo are looking for inefficiencies to maintain the company's growth.
To contact the editor, e-mail:
Join the Conversation
- 5 Proofs Russia is Geared-Up for Shooting War with U.S. and Can Win Future Nuclear Showdown
- Target’s ‘Surprise Doorbusters’ Black Friday 2014 Deals On TV Sets, Entertainment Centres, DVD Players And More
- IKEA Black Friday 2014 Ad Includes Discounts On Home Furnishings, Appliances, Kitchen Designs, Beds, Sofas, Mattresses And Toys
- T-Mobile’s Black Friday 2014 Deals On Apple iPhone 6, Samsung Galaxy Note 4/Edge, Nexus 6, HTC One M8, LG G3, iPad Air 2 And Mini 3
- ISIS Drug Transit From Afghanistan To Europe Confirmed By Russia: Money Goes Into Terror Funding And In New Recruitments
- ISIS Kidnaps Iraqi Defence Minister’s Family, Executes Female Parliament Candidates
- Bill Clinton At It Again, Caught By Camera In Jerusalem Peeking At Woman’s Breast