Disney Set to Terminate 200 Positions7 Jun, 2011 By: Erik Gruenwedel
The layoffs, primarily in distribution, to occur next week
The Walt Disney Co. will terminate about 200 positions in its studio operations — including home entertainment — sometime during the week of June 13, a corporate source confirmed.
The downsizing includes positions not filled through attrition and layoffs of select personnel whose positions were not identified because the employees in question have not yet been notified, the source said.
Studio positions include marketing, production, distribution and home entertainment.
“The bulk of the layoffs will be in distribution,” the source said. “[They are] are not all in the home entertainment division.”
Separately, Lionsgate several weeks ago downsized its workforce 2% (from a total workforce of 500), in a move the mini-major characterized as a “realignment of resources” instead of layoffs, according to a source familiar with the situation.
“Probably about 10 people let go on the packaged media side, but there have also been five new hires recently in the digital area of our business to support digital platform growth,” the source said. “This was a one-time event and is not an ongoing process.”
Restructuring in home entertainment is also on the horizon at Paramount Pictures.
Speaking about capital expenditures an investor event June 2, Viacom CEO Phillippe Dauman said Paramount would be reassessing internal costs in its home entertainment division going forward.
“As the home entertainment stream is challenged, fewer DVDs are being sold, so you have to review your home entertainment overhead,” Dauman said. “That's adjusting to the business model. We’re certainly very focused on that. We continue to work on the overhead there.”