Disney plans to cut staff as part of a review of the company's cost structure

In the wake of a long summer season of cost-cutting and budget cuts in Hollywood, Disney has implemented a new round of layoffs across its corporate structure.

“We continually evaluate ways to invest in our businesses and manage our resources and costs more effectively to drive the cutting-edge creativity and innovation that consumers value and expect from Disney,” a company spokesperson said. “As part of this ongoing optimization work, we have reviewed the cost structure of our corporate-level functions and identified opportunities to operate them more efficiently.”

It is unclear which corporate-level functions will be most affected by the latest layoffs or whether the review will affect employees in Burbank or other locations. A Disney representative did not provide details on the number of employees affected or the scope of the round of cost-cutting. The latest corporate-level cuts were previously announced by Deadline.

The studio group led by Bob Iger, like almost every Hollywood company, has laid off employees in several departments this year. In May, Pixar laid off around 14 percent of its workforce, about 175 employees, as part of what was described as the largest restructuring for the unit as part of the move away from series production at Disney+.

At Disney's earnings call on Aug. 7, CFO Hugh Johnston noted that the company is still evolving to become profitable in streaming. “Not long ago we were losing $1 billion a quarter, now we're making money and we expect to continue down that path and make more money to get to and ultimately significantly exceed the double-digit margins we've been talking about,” Johnston told analysts when asked about margins and the crackdown on password sharing. (That crackdown, the paid sharing program, also began Wednesday.)

Last year, Iger unveiled a plan to lay off 7,000 employees. This was part of a “strategic realignment” of the company that was implemented in phases and saw job cuts over several months. In its latest annual report, Disney said it employed 225,000 people across its business units, including its film and television studio networks, ESPN sports division, its streaming services (Disney+ and Hulu), and its parks and experiences group. Of these, 167,000 employees are based in the United States and 58,000 are based outside the country.

So far this year, Disney shares are up about 3.5 percent, but are trading well below their 2021 and 2022 levels.