Layoffs Under Way at Disney

Walt Disney layoffs

Studio first to be impacted as Disney plans a corporate reorganization later this year

Disney has begun laying off around 150 staffers at Walt Disney Studios. Employees began receiving pinkslips Wednesday morning.

Individuals working in home entertainment, production, distribution and marketing, as well as the company’s music and theater business in New York City are feeling the brunt of the impact, with only a small number of employees leaving the animation division.

The layoffs represent less than 5% of the studio’s workforce across the Disney, Pixar, Marvel, Lucasfilm, Disney Theatrical Prods. (which includes Broadway, touring stage and ice shows) and music divisions.

See Also: Disney Employees Brace for Planned Reorg (EXCLUSIVE)

“As part of an ongoing review to ensure that the studios’ operational structure and economics align with the demands of the current marketplace, we have made the difficult decision to reduce our staffing levels in several divisions of the studio,” a spokesman said early Wednesday.

Variety first reported of Disney’s planned layoffs last week.

The layoffs come as the studio will rely more heavily on films that come from its Marvel, Pixar and Lucasfilm banners, as well as DreamWorks to fill its distribution pipeline. Disney brass also recently concluded a company wide review that tasked each division with ensuring that staff levels are in line with the company’s needs in a changing marketplace, particularly in divisions affected by shifts in new media and digital distribution platforms.

UPDATE: ESPN Layoffs – Cutting Roughly 400 Jobs

The internal audit was ordered late last year by Disney chief executive Bob Iger and chief financial officer Jay Rasulo to identify areas of redundancy and departments that need revamping amid changing business models.

The cutbacks came shortly after Lucasfilm slashed staff numbers at its LucasArts gaming division last week from around 200 to just a handful as it gets out of the business of producing “Star Wars” and other games. It will now license them to third-party developers instead.

See Also: LucasArts Lays Off Staff, Halts Videogame Production

Many at the studio had expected cuts to take place before the release of Disney’s second quarter earnings on May 7. Top execs have emphasized that the reorg is aimed at better positioning the Mouse House for future growth.

Buoyed by active trading on Wall Street Wednesday, Disney’s stock was already up $0.69 to $59.83 as the layoffs were under way.

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  1. Jennifer Korell says:

    Richard, Are you an animator because we could make our own animations for upcoming stories. There are beautiful stories out there. I wrote some children’s stories I want to do a cartoon on the characters. I just recently have been published my story. Jennifer Korell

  2. Jennifer Korell says:

    If there are any Disney animators that want to work on animations I have a great idea for
    some new movies. There are some great stories to animate. What do you say want to join
    like minded animators and make some movies. If so contact me and we can start a company only we won’t do what Iger is doing.

    • Richard Balducci says:

      That’s the spirit! Today, because of technology, everyone is their own conglomerate! Who needs bloated, mamby-pamby projects supervised by ignorant bean-counters anyway? Creativity is not confined to multinational corporations. Create your own universes, create your own empires.

      • Jennifer Korell says:

        Richard, Are you an animator? There are so many great children’s stories that would make great animations. If I can get permission from the author and illustrator maybe they would love to get their story animated. Jennifer

  3. Jim says:

    It’s so nice that Ms. Iger, has chosen to listen to his group of Bean Counters and throw the team under the bus that built the company in the last 20 years in Home Entertainment. If it was not for them there would be no need for you. Oh, is there a need for you know? KARMA

  4. Charlie Blodgett says:

    i think it is only fair, in proportion to the number of layoffs, that high level studio executives should have it written into their contracts that their salaries and bonuses be diminished accordingly. They, after all, are responsible for the bottom line AND the top line and if their work is not up to par (i.e., wrong choices, overgrowth, etc) they should feel the burn as well

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