Walt Disney Co. (DIS) has recently announced layoffs affecting at least 300 employees across multiple corporate departments. This move comes as the company aims to streamline operations and allocate resources more effectively, focusing on driving growth in its key businesses.
According to a statement from a company representative cited by Variety, the layoffs are part of a strategy to “continually evaluate ways to invest in our businesses and more effectively manage our resources and costs.” The impacted departments include human resources, legal, finance, and others located in the U.S. This latest round of job cuts follows similar actions taken earlier this year, with about 140 employees let go from the television division in July and 175 employees laid off from Pixar in May.
Despite these cost-cutting measures, Disney is actively pursuing growth strategies, including expanding its paid sharing program for Disney+ across multiple regions. The company has also tapped Academy Award-winning filmmaker Jared Bush as Chief Creative Officer (CCO) of Walt Disney Animation Studios and forged a first-look deal with renowned Spider-Man franchise director, Jon Watts.
The company’s financial performance has been positive, with fiscal third-quarter 2024 revenue reaching $23.16 billion, exceeding analysts’ estimates. Disney’s focus on its Direct-to-Consumer segment, particularly its streaming services, is seen as a key growth driver. Analyst Michael Ng from Goldman Sachs expects the company’s box office blockbusters and streaming growth to offset potential weaknesses in other segments like Experiences and linear television, putting Direct-to-Consumer on track for continued success.
Disney’s recent film releases like “Deadpool & Wolverine” have been commercially successful, generating global sales of $1.22 billion as of September 5. This positive momentum, combined with the company’s strategic focus on its streaming and film businesses, has contributed to a significant rise in Disney’s stock price. In the last 12 months, DIS stock has risen over 17%, outperforming other streaming giants like Netflix (NFLX), which has seen a stock increase of over 90% during the same period.
Despite the recent layoffs, Disney’s focus on cost management and growth strategies through its streaming platform and film releases has positioned the company for continued success in the evolving entertainment industry.
