Disney Confirms Studio Layoffs10 Apr, 2013 By: Erik Gruenwedel
The Walt Disney Co. April 10 confirmed it is eliminating positions within its studio operations.
Disney did not elaborate on the cuts, which reportedly affect 150 jobs across multiple divisions, including home entertainment, according to Reuters, which first reported the story.
“As part of an ongoing review to ensure that the studios’ operational structure and economics align with the demands of the current marketplace, we have made the difficult decision to reduce our staffing levels in several divisions of the studio,” Disney said in a statement.
The cuts, which seek to eliminate duplicative positions and streamline internal operations, are across the board at numerous studio divisions, are part of ongoing restructuring mandated last year by CEO Bob Iger and CFO Jay Rasulo, and could include another round of layoffs later this year.
Disney April 3 said it would shutter LucasArts, the 30-year-old video game publishing unit of Lucasfilm and creator of the Star Wars 1313 game, reportedly affecting 150 jobs. Disney assumed control of LucasArts last year with the $4 billion acquisition of Lucasfilm from George Lucas.
Walt Disney Studios saw a 43% decline in operating income to $234 million in the first quarter (ended Dec. 31).
Notable factors for the decline were decreases in home entertainment and theatrical revenue, partially offset by subscription video-on-demand distribution revenue, including its recent license deal with Netflix.
Disney reports second-quarter (ended March 31) results May 7.