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Walt Disney is considering thousands of job cuts as the entertainment giant steps up its cost-cutting efforts, with some managers asked to identify ways to achieve 20% in annual savings, according to a Bloomberg report.
The proposed reductions could come through job eliminations and cuts in other expenses, people familiar with the discussions informed. They asked to remain anonymous since the discussions are private.
The proposed restructuring is expected to affect different parts of Disney's business unevenly. Its operations, spanning theme parks, television networks and the movie studio, could face varying levels of reductions.
Chief Executive Officer Josh D'Amaro plans to reinvest part of the savings into film and television programming, technology, theme parks and cruise ship businesses, according to people familiar with the matter.
The company has promised double-digit growth in adjusted earnings per share in the current fiscal year. However, a Disney representative declined to comment on the reported job cuts.
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The latest cost-cutting exercise comes after several rounds of workforce reductions in recent years. Disney has cut billions of dollars in expenses and eliminated thousands of positions across its divisions, including ABC, Pixar, ESPN, its film studio and its experiences unit.
The company had 231,000 employees worldwide at the end of its last fiscal year. The Wall Street Journal reported on October 1 that Disney was planning to restructure its television division, along with job cuts in its legal and global affairs unit.
Disney is not alone in trying to reduce costs as traditional television revenue declines and streaming subscriber growth slows. Other entertainment companies, including Netflix Inc., Sony Pictures Entertainment and Skydance Corp.'s Paramount and Warner Bros. divisions, have also announced job cuts.
The industry is also dealing with a shift in viewing habits, with more audiences turning to social media, online videos and streaming services backed by technology companies such as Amazon.com Inc. and Apple Inc.
Speaking at the Bloomberg Screentime conference in Los Angeles last month, Disney President Dana Walden said the company needs to evaluate its structure and workforce size constantly.
“Technology has set their sights on our business, and we must survive and thrive and grow, and that's what we're going to do,” Walden said.