Disney Warns of Deeper Layoffs as Cuts Loom
Disney's legal chief says his department will shrink sharply, with a broader round of layoffs possibly starting next week.
Disney is preparing another round of job cuts, and this time the company's legal department is bracing for a significant reduction. In a September 18 memo, chief legal and global affairs officer Horacio Gutierrez told staff his organization would become "a much smaller organization," according to cartoonbrew.com.
The warning follows a year of steady trimming at the entertainment giant. Disney let go of roughly 1,000 workers in April and announced several hundred more cuts in July, including significant reductions at Pixar.
A separate, broader round of layoffs could begin as early as next week. It remains unclear whether the upcoming cuts will reach Disney's animation business.
Profits Up, Costs Under Scrutiny
The cuts are landing even as Disney's finances look strong. The company reported $25.2 billion in revenue for its third fiscal quarter, up 7% year over year, and a quarterly profit of $2.64 billion.
Disney has also been returning cash to shareholders, spending $7.2 billion on buybacks and $1.3 billion on dividends in the first nine months of its fiscal year. In August it raised its full-year buyback target to at least $9 billion.
Meanwhile, the company named an AI executive as its first-ever company-wide chief technology officer, a signal of where Disney sees future investment.
Quick answers
How many Disney workers were laid off this year?
Disney let go of roughly 1,000 workers in April and announced several hundred more cuts in July, including significant cuts at Pixar.
When could the next Disney layoffs start?
A separate, broader round of layoffs could begin as early as next week, though it is unclear whether animation will be affected.
How is Disney performing financially amid the cuts?
Disney reported $25.2 billion in third-quarter revenue, up 7% year over year, and a quarterly profit of $2.64 billion.