Walt Disney Co. laid off nearly 300 workers this week amidst ongoing industry consolidation in Southern California. Sources close to the company revealed that these layoffs predominantly affected human resources and technology divisions, coinciding with a voluntary early retirement program for older employees.
CEO Josh D’Amaro, who succeeded Bob Iger in March, is reshaping Disney under a “One Disney” framework to streamline operations following significant acquisitions like the 2019 purchase of 21st Century Fox. As part of these changes, Disney+ is being positioned as the main streaming hub, while the Hulu brand is expected to be diminished.
Employees anticipate further layoffs, particularly in the television division, with substantial restructuring expected early next year. An internal memo also indicated downsizing in the legal government affairs department.
During a media conference, Disney President Dana Walden acknowledged the turmoil within the industry, as traditional studios have drastically reduced their workforce amid a streaming market correction and labor strikes. She emphasized that restructuring is critical to adapting to evolving consumption patterns, which have affected the profitability of television operations.
Walden characterized the voluntary retirement initiative as generous, aiming to provide long-tenured executives the opportunity to choose their departure timing. She noted the continuous evolution of the industry driven by technological advancements and stressed the need for Disney to adapt and thrive.
