The Walt Disney Company (DIS) is laying off several hundred employees across its Disney Entertainment segment globally as part of efforts to streamline costs. The exact number of affected employees has not been disclosed, but reports suggest the layoffs will impact staff in marketing for both film and television, as well as television publicity, casting, development and the company’s financial operations.
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Consumers’ shifting preferences from traditional cable TV to digital streaming platforms have significantly impacted the entertainment giant’s operations. The company is exploring ways to streamline operations and boost efficiency, while maintaining a strong focus on creativity and innovation. It also stated that no teams will be eliminated entirely. As of September 30, 2024, Disney reported having 233,000 employees globally, of which nearly two-thirds are based in the U.S.
Disney Strategizes to Boost Efficiency
The latest round of layoffs follows more drastic cuts made over the past two years. Disney has recently adopted a more “surgical” approach to its cost cutting measures. In 2023, the company cut over 8,000 roles, followed by additional job cuts in July, September, and October of 2024. In March of this year, Disney laid off nearly 200 employees from its TV and ABC News operations.
Meanwhile, Disney’s film releases are getting mixed reviews from audiences worldwide. Snow White underperformed at the box office, while Captain America: Brave New World saw a more favorable response. So far this year, Lilo & Stitch has been the studio’s best performer, breaking box office records in the U.S. over the Memorial Day holiday weekend.
Last month, Disney reported better-than-expected fiscal Q2 results and raised its full-year profit outlook. Revenues rose 7% year-over-year to $23.6 billion, beating analysts’ consensus of $23.09 billion. Similarly, adjusted earnings per share increased to $1.45 from $1.21 in the same period last year, surpassing the consensus of $1.19. Disney attributed the robust results to strong subscriber growth in its Disney+ streaming service.
Is Disney a Long-Term Buy?
Analysts remain highly optimistic about Disney’s long-term stock trajectory. On TipRanks, DIS stock has a Strong Buy consensus rating based on 14 Buys and four Hold ratings. Also, the average Walt Disney price target of $123.56 implies 9.4% upside potential from current levels.
