Disney has just announced its putting two hundred and fifty of its employees on waivers. Often times, we equate layoffs with massive financial problems, but it’s important to take a step back and analyze the situation before rushing to judgment. If a clothing store employs thirty people and sends fifteen packing, it’s likely they’re having a meltdown. If one of the largest companies in the United States lets two hundred and fifty go, it’s more probable they’re just restructuring or responding to the normal ebbs and flows of business.
That seems like the case here, as the total manpower loss only amounts to about five percent of the 5000 strong worldwide workforce. Most of the cuts are a direct result of Disney combining its domestic and global distribution arms, but a few also come from the marketing and production departments. According to The Hollywood Reporter, Disney is blaming these latter losses on sluggish home entertainment revenue. DVD and Blu-Ray sales are mostly down across the board, though whether that’s fallout from a slumping economy affording fans less purchasing power or the pirate menace is anyone’s guess.
Another possible cause worth noting is the emergence of Marvel and Pixar. As those studios make more and more films, Disney places less and less emphasis on itself for original content. This decrease in original production means less employees are needed, or at least employees are now needed in different areas. Once the market turns around, look for Disney to restock its pipeline with a new breed of employees better equipped to support these lucrative divisions.
