Disney is planning to begin layoffs at its studio and consumer product divisions within the next two weeks in effort to cut costs.
The job cuts will be mostly be from marketing and home video at the studio, with a smaller number coming from animation, according to a Reuters report, which cited anonymous sources because the layoff plans haven’t been made public.
It’s unknown how many job cuts will occur, but they are a result of an internal audit ordered by CEO Bob Iger, who is seeking cost-saving measures in order to boost profits. Last year, the audit was ordered to help identify areas where Disney could calibrate staff levels in line with changes in the marketplace.
Disney has yet to issue a formal statement regarding the layoffs, but after several acquisitions over the past few years, the company was looking at eliminating redundancy within its various departments.
Disney has been laying off workers at Lucasfilm since it’s acquisition in December. On Wednesday, Disney shut down LucasArts game studio and laid off 150 people, saying the video-game developer will move to a licensing model.
Lucasfilm said in a statement:
“After evaluating our position in the games market, we’ve decided to shift LucasArts from an internal development to a licensing model, minimizing the company’s risk while achieving a broader portfolio of quality Star Wars games. As a result of this change, we’ve had layoffs across the organization. We are incredibly appreciative and proud of the talented teams who have been developing our new titles.”
In February, Iger explained, “After delivering another record year of growth in 2012, we’re off to a solid start in fiscal 2013. Our ongoing success is driven by our long-term strategy, the strength of our brands and businesses, and our high quality family entertainment.”
Business Insider reports that Disney doesn’t need as much man power as it once did at its studio. The studio is now heavily relying on brands Pixar, Marvel, and, now Lucasfilm to release films.
Disney cut 50 jobs in 2012 when they closed Juction Point game studio in Texas and 200 others in 2011.
Disney shuts down LucasArts
In today’s episode, Holly talks about the end of LucasArts, Activision fires High Moon Studio employees.
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