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Disney Confirms Layoffs Are Underway

April 11, 2013, 7:36 am GMT

The Mouse House announces that it will reduce the number of its workers in order to save cost and focus on the marketing and home video units.



Walt Disney Company has released a statement confirming that the studio is laying off its staff. In the statement, the studio's spokesperson said, "As part of an ongoing review to ensure that the Studios' operational structure and economics align with the demands of the current marketplace, we have made the difficult decision to reduce our staffing levels in several divisions of the Studio."

The layoffs already started earlier this week as Disney cut the number of its workers at the LucasArts game studio, saying that they would be no longer developing games. The San Francisco-based company didn't mention how many workers were affected by the cuts. Disney will still continue cutting the number of the staff in studio and consumer products divisions.

The layoffs are believed to be the result of an internal corporate review, in which CEO Bob Iger demanded to increase efficiency. With the company producing fewer films and relying more on the output from its Marvel, Lucasfilm and Pixar arms, there is no need to maintain the same staffing levels.

"We are constantly looking at eliminating redundancies and creating greater efficiencies, especially with the rapid rise in new technology," said Disney spokeswoman Zenia Mucha back in January.

It is worth noting that Disney employs 166,000 workers and the studio has been doing well with its mega-blockbusters such as "The Avengers" and "Oz: The Great and Powerful". Its upcoming releases include Johnny Depp's "The Lone Ranger" and Tom Hanks' "Saving Mr. Banks."

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