Disney Trims Workforce By 300, Targets Corporate Departments for Cost Management
Walt Disney Co (NYSE:DIS) has let go of at least 300 employees across multiple corporate departments.
“We continually evaluate ways to invest in our businesses and more effectively manage our resources and costs to fuel the state-of-the-art creativity and innovation that consumers value and expect from Disney,” Variety cites a company representative.
The layoffs affected human resources, legal, finance and other departments in the U.S.
In July, Disney laid off about 140 employees in its television division, representing about 3% of its workforce. In May, Pixar laid off 175 workers, about 14% of its headcount.
Disney reported fiscal third-quarter 2024 topline growth of 4% to $23.16 billion, just managing to beat the analyst estimate of $23.11 billion.
The company’s recent attempts to unlock value include expanding its paid sharing program for Disney+ in multiple regions and tapping Academy Award-winning filmmaker Jared Bush as Chief Creative Officer (CCO) of Walt Disney Animation Studios. The company forged a first-look deal with the Spider-Man franchise’s famed director, Jon Watts.
Goldman Sachs analyst Michael Ng expects Disney’s box office blockbusters and streaming growth to help offset Experiences and linear weakness, putting Direct-to-Consumer on track for continued growth. Disney Marvel’s 2024 release “Deadpool & Wolverine” has earned $1.22 billion in global sales, according to a September 5 report.
Walt Disney stock is up over 17% in the last 12 months. Streaming giant Netflix Inc (NASDAQ:NFLX) is up over 90%.
Price Actions: DIS stock is up 0.51% at $94.40 premarket at the last check Thursday.
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