by Christopher Freeburn | January 7, 2013 11:13 am
Disney (NYSE:DIS) may trim expenses by laying off unnecessary employees or freezing new hiring.
The iconic media company, which reported record profits last year, is mulling staff cuts at a number of its operating units, including its movie studios, sources told Reuters.
While the company hasn’t said anything about the timing or potential size of layoffs, a Disney spokesperson told Reuters the media giant always looks to increase efficiency and reduce redundancy in its operations and is conducting an internal review of spending. A source told Reuters that a hiring freeze was a possible alternative to staff cuts.
An analyst at Janney Montgomery Scott said Disney was likely to cut personnel at its money-losing interactive game division, as well as at its music and movie units.
Despite last year’s high earnings, Disney executives have noted that lackluster home-video sales and the increased costs of keeping the broadcast rights to big-league sports could mitigate profits.
In October, Disney purchased the rights to George Lucas’ Star Wars franchise for $4 billion and announced plans to produce three new installments, with the first hitting theaters in 2015.
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