May 2, 2023

Disney Layoffs Hit Animation and Kids Businesses

Bob Iger announced earlier this year that he would lay off 7,000 employees as part of a $5.5 billion cost-cutting plan, delighting investors and terrifying employees.

In March, Marvel Entertainment was absorbed by Disney and Marvel Entertainment Chairman Isaac "Ike" Palmater was dismissed. Last week, however, the first widespread layoffs were announced, and Disney's animation business was not affected.

Khaki Jones, currently senior vice president of series at Disney TV Animation, is one of those being let go by Disney. Jones is a 13-year veteran who oversaw all series and short-form content produced for Disney Channel and Disney+.

From Disney's kids division, vice president Claire McCabe and executive director Megan de Boer were fired; the two executives were appointed to their roles last year.

Iger returned as CEO last November to restore the company's profitability, and has stuck to that goal ever since; the company's direct-to-consumer division, which includes Disney+, Hulu, and ESPN+, lost over $4 billion in 2022.

Shortly after these 2022 results were released, we asked Colin Tedards of The Investor Channel to explain why Iger felt it necessary to cut 7,000 jobs at the company through a corresponding earnings report.

We have not yet received any information about other executive or staff reductions at Animation, but will keep an eye on them. According to inside sources, the next round of cuts will likely come from the ABC, ESPN, and Park divisions.