Walt Disney Co. has recently decided to cut jobs by 20% as part of a cost-cutting restructuring plan for the company’s motion picture operation. The company also plans to reduce the number of animated and action films it produces and distributes from 18 to about 10 per year and between two and three Touchstone films per year. Due to the restructuring of The Walt Disney Studios, which will put several business units under two global organizations, approximately 650 positions will be eliminated. Buena Vista Worldwide Marketing and Distribution and Buena Vista Worldwide Home Entertainment will now oversee the distribution and marketing of all Disney and Touchstone Pictures films and the distribution and marketing of the studio’s home entertainment films respectively.
Disney joins the handful of other media conglomerates that have recently reduced their workforce. Metro-Goldwyn-Mayer Inc. and Dreamworks SKG cut about 1,350 jobs, while Warner Bros. eliminated about 400 jobs. Disney’s Miramax Film specialty unit has been reduced as well, and Sony is in the process of making decreases.
