Disney Layoffs Are on the Way

by Nate Wooley | April 5, 2013 12:34 pm

Disney Layoffs Are on the Way

disney Disney Layoffs Are on the Way[1]Staffers at media giant Disney (NYSE:DIS[2]) 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[3].

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.

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Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/01/disney.jpg
  2. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  3. Variety is reporting: http://variety.com/2013/biz/news/disney-staffers-brace-for-layoffs-amid-planned-reorg-exclusive-1200333321/
  4. Almost 50,000 Fans Pay to Have TV Series Brought to Big Screen: http://investorplace.com/2013/03/almost-50000-fans-pay-to-have-tv-series-brought-to-big-screen/
  5. Ryan Gosling to Quit Acting: http://investorplace.com/2013/03/ryan-gosling-to-quit-acting/
  6. Disney Stops Making Star Wars Games: http://investorplace.com/2013/04/disney-stops-making-star-wars-games/

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