Disney plans layoffs in studio and consumer products divisionsLeah Zanolla | Posted: Apr 6, 2013 | Updated: Apr 6, 2013 - 3:58:18 PM
The Walt Disney Co. is expected to start a series of layoffs in their studio and consumer product divisions. The company has not confirmed the layoffs, but sources claim the process will start in the next couple of weeks. According to the sources, "the studio job cuts will center on the marketing and home video units and include a small number from the animation wing." There are no firm numbers on how many people will be cut.
The cutbacks are due to an internal review on ways to cut costs last year; some jobs will be cut because technology has improved to the point where the positions are no longer needed. Disney has also acquired several new companies in the recent past, which led to duplicate jobs being performed; combining some of these positions can save money.
Proof that this may all come to fruition was seen this past week, when Disney shut down the LucasArts game division that was acquired when they purchased Lucasfilm last year. The company will now use external developers to create the games instead.
300 jobs were cut last year from the Disney Interactive division, mostly due to shift toward online entertainment and away from video game systems. Layoffs in the publishing division also took place last year as the division moved its headquarters to New York from Burbank California; this was part of the consumer products unit restructuring.
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