×
You will be redirected back to your article in seconds

Disney Layoffs Come to Consumer Products Group

Disney has issued pink slips this week to employees in its Consumer Products and Interactive Media group, a source said Friday, with the total amounting to significantly less than 50.

The Burbank, Ca.-based entertainment giant reported on Aug. 7 that the unit posted an 8% decline in revenues to $1 billion and a 10% slide in operating income to $324 million in its fiscal third quarter ended June 30.

“The decrease in operating income was due to lower income from licensing activities and decreased comparable retail store sales, partially offset by lower costs at our games business,” Disney said. “The decrease in income from licensing activities was driven by lower revenue from products based on ‘Spider-Man’ and ‘Cars,’ partially offset by an increase from products based on ‘Avengers.'”

A source told Variety that the layoffs are related to a corporate restructuring announced in March, when Disney announced it would combine its parks and resorts unit with consumer products under Bob Chapek. At the time, the company said the combination of consumer products with the theme parks’ retail operations would lead to greater efficiencies.

Disney had no comment. The source also said that the job cuts are not related to Disney’s pending $71 billion acquisition of the entertainment assets of 21st Century Fox. Shareholders approved the deal in July.

Popular on Variety

More Film

  • Costa Gavras

    Costa-Gavras and Cast on Nationality, Identity, and Cinema

    SAN SEBASTIAN  —  Though he’s been based in Paris since 1955 and came up through the French film industry, director Costa-Gavras has never forgotten his roots. “Those who are born Greek,” said the Peloponnese-born filmmaker at a Saturday press conference,  “stay Greek all their lives.” The once-and-always Greek was not just in San Sebastian to [...]

  • Lorene Scafaria, Jennifer Lopez. Lorene Scafaria,

    'Hustlers' Director Lorene Scafaria: 'We Wanted to Treat It Like a Sports Movie'

    The star-studded cast of “Hustlers” didn’t just become strippers in the empowering female-helmed blockbuster — they also became athletes. When speaking to “The Big Ticket,” Variety and iHeart’s movie podcast, at the Toronto Film Festival earlier this month, “Hustlers” director Lorene Scafaria explained the extreme athleticism required of the movie’s leading actresses, who all had [...]

  • Jonathan Van NessLos Angeles Beautycon, Portrait

    Jonathan Van Ness Reveals HIV Diagnosis, Former Drug Addiction

    “Queer Eye’s” Jonathan Van Ness is getting vulnerable in his new memoir “Over the Top.” In a preview of his book with the New York Times, Van Ness opened up about his early struggles with sex and drug addiction as well as his experience with sexual assault, revealing that he was abused by an older [...]

  • 4127_D022_00003_RC(l-r.) Elizabeth McGovern stars as Lady

    Box Office: 'Downton Abbey' Dominating 'Ad Astra,' 'Rambo' With $31 Million Opening

    “Downton Abbey” is heading for a positively brilliant opening weekend after scoring $13.8 million in domestic ticket sales on Friday. If estimates hold, the feature film version of the popular British television show should take home approximately $31 million come Sunday, marking the biggest opening ever for distributor Focus Features and beating previous record holder [...]

  • Gully Boy to represent India in

    'Gully Boy' to Represent India In Oscars Race

    The Film Federation of India has chosen Zoya Akhtar’s “Gully Boy” as its entry in the Academy Awards’ international feature film category. The picture, a coming of age tale about an aspiring rapper in Mumbai’s Dharavi slum premiered at the Berlin film festival in February before opening to a wave of acclaim at home in [...]

  • Lucy-Lost

    Cartoon Forum: 30th Anniversary, Little Giants and New Generations

    TOULOUSE, France –  Celebrating its 30th anniversary, Cartoon Forum wrapped Sept. 19 having showcased the ever-growing strength of European animation. 85 projects were pitched from 24 countries at the co-production forum platform that played host to north of 1,000 investors, distributors and producers – a record number. Falling on French-speaking Belgium – Wallonie-Bruxelles – whose [...]

  • Renee Zellweger Rufus Wainwright Sam Smith

    Renée Zellweger: Judy Garland Was 'My Childhood Hero'

    Awards buzz is building around Renée Zellweger for her performance as Judy Garland, emerging as a frontrunner in the Oscar race for best actress. But for her, the real prize was paying tribute to Garland, of whom she’s been a lifelong fan. “Nobody was prettier, nobody sang prettier…the adventures she had, [she was] my childhood [...]

More From Our Brands

Access exclusive content