Recently, it was revealed that the Walt Disney Company would be laying off over a thousand members of staff, many of whom are expected to be within the marketing department following the merger of teams, along with the upcoming merger of Hulu into Disney+, which will result in the reduction of duplication of staff.
The main reason for these layoffs is to reduce costs for Disney, which, along with many other studios, has to deal with the economic realities of movies making less at the box office, a reduction in linear television revenue and streaming services having to be more competitive.
More details on the layoffs have now been revealed, with a memo being sent out by the new Disney CEO, Josh D’Amaro, confirming the news and that the layoffs will be happening this week.
Here’s the full memo from the Walt Disney CEO Josh D’Amaro:
Dear Fellow Employees & Cast Members,
We have experienced a great deal of change these last few years, both at the company and across our industries. Knowing firsthand how these moments can bring uncertainty, I want to be open about some difficult news that will be communicated this week.
In January, we announced our unified enterprise marketing and brand organization, designed to serve consumers in an even more connected way. Over the past several months, we have looked at ways in which we can streamline our operations in various parts of the company to ensure we deliver the world-class creativity and innovation our fans value and expect from Disney. Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically-enabled workforce to meet tomorrow’s needs. As a result, we will be eliminating roles in some parts of the company and have begun notifying impacted employees.
I know this is hard. Those that will be leaving us have done meaningful work here and care deeply about this company. These decisions are not a reflection of their contributions, or of the overall strength of the company. Rather, they reflect our continual evaluation of how to more effectively manage our resources and reinvest in our businesses.
Compassion and respect remain at the heart of our company. As we move forward through this transition, our priority is to support those impacted and help each person navigate what comes next with resources, guidance, and direct support.
Despite these difficult decisions, I remain optimistic about where we’re headed as a company. I’m deeply grateful for all of your contributions and for the dedication, professionalism, and care you bring to your work each day. Even in challenging moments, you continue to demonstrate what makes Disney so special.
Josh
Following this memo being sent out, more details on how the staff cuts will impact Disney have been revealed, as Marvel has been heavily hit, with a reduction of staff by about 8%. Those layoffs are in most of the departments, including film and TV production, comics, franchise, finance and legal. The visual development has taken the biggest hit, with Marvel Studios only keeping a small team in place to oversee the hiring of contractors for upcoming films and shows on a project-by-project basis.
The home entertainment division has also been hit hard, with the whole team let go, as Disney has recently outsourced its physical media business to Sony. The marketing department also saw a big reduction in its staff, including the EPK team, which included the director of creative content, Natalie Clunis. The digital marketing team saw many jobs removed, including the SVP of Global Digital Marketing, Dustin Sandoval, and the Director of Digital Marketing, Mike Reeder.
Roger’s Take: It’s unfortunate that so many staff members are losing their jobs this week, and it’s horrible that these mass layoffs happen in the way they do. The reality is that Disney’s staff numbers have ballooned over the years, especially following the merger with 20th Century Fox and the massive push towards streaming. With Marvel drastically cutting back on how many shows and films it releases, it was always going to eventually result in some layoffs.
With regards to the marketing departments, with the massive reduction in the number of shows and films being released across all the different brands/studios, it’s easy to see how they needed to trim back the marketing roles. Since Disney+ launched, we’ve seen a huge change in the sheer quantity of content being produced, with a focus now on fewer but better projects. It was always going to happen. The outsourcing of the home media department is also a shame after so many decades, but with physical media releases no longer being a priority and outsourcing the division to Sony, it also felt more like a when it would happen, rather than an if. Hopefully, those impacted will be able to find work soon, but with most other studios also cutting jobs, it’s going to be tough for those affected.
What do you think of this news? Let me know on social media!
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source whatsondisneyplus.com ’
