Disney Layoffs Are on the Way

Cuts expected to come before Disney's May 7 earnings report

   

disney Disney Layoffs Are on the WayStaffers at media giant Disney (NYSE:DIS) are preparing for the worst.

A round of layoffs — which employees say are due to a planned reorganization — is expected to come in the next few weeks, Variety is reporting.

The reorganization is a part of Disney’s efforts to transform itself in the face of a changing media sector. A review was ordered by CEO Bob Iger last year in hopes of identifying departments that are redundant and can be eliminated.

As an example, the production of physical discs to sell movies is declining. Disney believes that a switch to digital delivery of content will be more profitable, and therefore the staffing in the division can be reduced. The same can be said of its movie-making efforts as the company relies more on subsidiaries such as Pixar, Lucasfilm and Marvel to bring its releases to theaters.

Reports say that the latest these cuts will come is early May; Disney announces earnings on May 7 and wants to announce the cuts prior to that report.

More stories about movies:


Article printed from InvestorPlace Media, http://investorplace.com/2013/04/disney-layoffs-are-on-the-way/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.