Walt Disney Company President Dana Walden described the entertainment giant’s latest round of job cuts as “extremely painful” but necessary, speaking Thursday at the Bloomberg Screentime conference in Los Angeles.
More than 300 employees were laid off from Disney on Tuesday, with most of the cuts concentrated in the human resources and information technology departments, according to U.S. media reports. Walden said the company had also given a group of executives the option to decide for themselves whether to leave or stay as part of a voluntary retirement program, though it is not clear whether the most recent layoffs drew on that initiative.
Years of Cost-Cutting
Disney has gone through several waves of cost reductions in recent years as it contends with fierce competition in the streaming market. The company has also turned to artificial intelligence tools, which offer a cheaper alternative for production work, adding further pressure on traditional roles within the organization.
The latest cuts follow an earlier reduction of roughly 1,000 positions in April, which were concentrated mainly in Disney’s marketing group. That round came after Josh D’Amaro took over as the company’s new chief executive.
‘Harsh Reality’ for Long-Time Staff
Walden acknowledged the personal toll of the cuts, noting that the company has let go of colleagues she had worked alongside for much of her career. “It is in many ways a harsh reality,” she said, adding that the decision was “extremely painful.”
She framed the restructuring as part of a broader shift facing media companies as they compete with technology firms encroaching on entertainment. “There is a need to constantly evaluate how you’re structured,” Walden said, adding that technology has “set their sights” on Disney’s business and that the company must “survive and thrive and grow.”
The Walt Disney Company did not immediately respond to a request for comment.
This article references reporting from:
