- Disney asks managers to find 20% annual spending cuts.
- These planned cuts likely lead to further job reductions.
- Savings will fund programming, technology, theme parks, and growth.
Walt Disney Co. is asking some managers to find ways to trim annual spending by 20%, setting the stage for another round of job cuts at the entertainment company, according to a Bloomberg report citing people familiar with the matter.
The savings exercise is expected to cover more than staffing, with managers also looking at other expenses. The impact is likely to vary across Disney’s businesses, which include television networks, film studios and theme parks.
The company is also considering how to deploy part of the money saved. Bloomberg reported that executive Josh D’Amaro intends to direct some of the savings towards film and television programming, technology, theme parks and cruise ships.
Disney is pursuing the cost reductions as it works towards its goal of delivering double-digit growth in adjusted earnings per share in the current fiscal year.
Content, Technology And Theme Parks In Focus
The planned savings are not expected to be distributed evenly across Disney’s operations. Some divisions are likely to face a greater share of the reductions, although the report did not specify the number of jobs that could be affected.
The company’s strategy also points to areas where it intends to continue investing. D’Amaro’s plans include allocating a portion of the savings to its film and television slate, technology, theme park business and cruise operations.
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Disney’s Restructuring Follows Earlier Job Cuts
The latest cost review follows a series of major restructuring exercises at Disney. In recent years, the company has reduced expenses by billions of dollars and removed thousands of roles across its business.
Previous cuts covered ABC, Pixar, ESPN, Disney’s film studio and its Experiences division. The company had a global workforce of approximately 2,31,000 employees at the end of the last fiscal year.
The Wall Street Journal has also reported on restructuring plans involving Disney’s television, legal and global affairs teams.
Media Industry Faces Shifts In Viewing Habits
Disney’s efforts to reduce costs come as media companies contend with changes in how audiences consume entertainment. Traditional television is in structural decline, while the growth of streaming subscriptions has slowed.
Competition for viewers has also widened beyond established media companies, with social platforms and technology groups such as Apple and Amazon vying for audiences.
Netflix, Sony Pictures Entertainment, as well as the Paramount and Warner Bros. divisions, have also turned to workforce reductions, reflecting pressure across the sector.
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Dana Walden Says Companies Must Review Their Structure
Disney President Dana Walden addressed the need for organisational changes at the Bloomberg Screen Time conference in Los Angeles last month.
“There is a need to constantly evaluate how you’re structured and how big the organisation is,” Walden said.
She also highlighted the challenge posed by technology to the entertainment business, saying: “Technology has set its sights on our business, and we must survive and thrive and grow, and that’s what we’re going to do.”
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