More layoff news in what already has been a depressing week. Disney is in the middle of a new wave of cuts as part of a “cost-saving initiative,” sources tell Deadline. We hear about 300 or so people are affected by the layoffs that started yesterday and are continuing today and tomorrow, with a possibility to stretch beyond that.The positions — all based in the U.S. — are across Disney’s corporate operations, including legal, HR, finance and communications, we hear. Among the divisions that are not impacted in this round are Parks, ESPN as well as Disney Entertainment.“We continually evaluate ways to invest in our businesses and more effectively manage our resources and costs to fuel the state-of-the-art creativity and innovation that consumers value and expect from Disney,” a Disney spokesperson said in a statement to Deadline. “As part of this ongoing optimization work, we have been reviewing the cost structure for our corporate-level functions and have determined there are ways for them to operate more efficiently.”Today’s cuts follow the July 31 round of layoffs at Disney Entertainment Television when about 140 people were let go, representing about 2% of the total DET workforce, and Disney animation studio Pixar reducing staff by 14% in May.Disney’s layoffs started yesterday, on the same day Paramount Global laid off hundreds in the second round of its own layoffs aiming to cut 15% of the company’s U.S. workforce, with Paramount+ getting the brunt of the cuts.Traditional media companies are going through tough times amid a soft ad market — despite the influx of spending on political ads and live sports — as pay-TV continues to decline markedly and ad dollars are migrating to digital platforms. Legacy companies also have been slashing streaming costs as they are shifting focus on profitability for their platforms.In addition to Disney and Paramount’s multiple rounds of staff reductions, Fox Entertainment eliminated about 30 positions through a restructuring in July. There were also layoffs at Warner Bros Discovery the same month.Disney has been in a cost-cutting mode since Bob Iger returned as CEO in late 2022. The big first wave in 2023 eliminated roughly 7,000 jobs over multiple rounds, which represented about 3.2% of the company’s total global workforce.
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