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
- More Bad News for Android 5.0 Lollipop As Problems Come In for Nexus and Other Devices
- US To Supply Defensive Lethal Weapons To Kiev – A Vey Alarming Signal, Says Russia
- Amazon Black Friday 2014 Deals Start On Nov. 21, 2014 Including Limited-Time Lightning Deals And Deals Of The Day On Clothes, Toys, Jewelry, Watches, Bags, Accessories And Electronics
- Russia's New Tactical Nuclear Weapons Program Growing Confident Against the US: Talks of World War III
- Travel Alert: New Delta Air Lines Airbuses Could Be Seen In Australia Soon
- Walmart Canada Feeling The Heat As Grocery War Intensifies
- Travel Alert: Frequent Flyer Tie-Up Between Virgin Australia, South African Airways Enhanced