Disney Defends Layoffs as Necessary for Survival in Changing Industry

Disney's latest round of layoffs has affected around 300 employees, with human resources and technology among the areas most impacted. The cuts come shortly after Disney closed enrollment for a voluntary early retirement program aimed at directors and above who had spent at least 10 years with the company.

In an interview at the Bloomberg Screentime conference in Los Angeles, Disney President and Chief Creative Officer Dana Walden described the job cuts as 'extremely painful', while defending the restructuring as necessary for the company to survive and thrive in a rapidly changing entertainment industry.

Walden said Disney had been shaped by years of acquisitions that left the company operating through multiple business units, each with separate leadership structures and profit-and-loss responsibilities. She emphasized the need for a more centralized model, where the company can make decisions quickly without being hindered by complex organizational structures.

The latest layoffs represent the third round under Chief Executive Josh D'Amaro, who has promoted a 'One Disney' approach aimed at integrating the company's film, streaming, theme parks, consumer products, gaming, and sports businesses. The effort to reduce labor and other expenses is ongoing, with D'Amaro and CFO Hugh Johnston stating in August that the company was still in the middle of cost-reduction efforts.