Disney layoffs are expected to soon at the famed movie studio. Executives are preparing. But how big will the cuts really be?
Disney is expected to lay off employees at the studio and consumer product divisions in the next two weeks, according to Reuters. The latest layoffs reportedly stem from a company-wide review that took place recently. Variety reports that many expect that the layoffs will occur before the release of Disney's second-quarter earnings on May 7.
Although it is unknown how many Disney layoffs will occur, sources told Reuters that "the studio job cuts will center on the marketing and home video units and include a small number from the animation wing." The home video division has increasingly been declining as Disney has embraced the digital market. Variety reports that Disney (and it's CEO Bob Iger) believes that deals and collaborations with digital companies, such as Netflix and iTunes are more profitable for Disney's movies and TV shows.
These are not the first Disney layoffs to occur recently. Earlier this week, Disney executives let go of employees at the LucasArts games studio, as Disney starts to let outside companies license Star Wars. Last year, Disney also had layoffs at Disney Interactive.
"The previous layoffs cut away the muscle. These will cut us to the bone," a Disney insider told Variety.
According to Variety, Disney Chief Executive Iger is "focused on Disney's bottom line."
Disney is trying to run itself more like Marvel Comics with a "streamlined approach" to running all of its divisions, especially with Star Wars.
Although Disney overall reportedly is coming off one of its best years in 2012 (profits were up 18), CEO Iger thinks that the company can be run "more effectively." Disney now more than ever relies on its companies, such as Marvel and Pixar to fill its movie slate for the year. Disney currently only has three of its own movies on their schedule this year including the winter hit, Oz The Great and Powerful.