Just a day after CEO Bob Iger announced, in a staff memo, that the company will be facing employee cuts, Disney, on Tuesday, initiated its first round of layoffs in its General Entertainment division, targeting Hulu and Freeform. The cuts have come as a part of the company’s ongoing restructuring efforts to adapt to changing market conditions. The first set of layoffs will affect more than 100 employees at Hulu, which is a part of Disney’s streaming division.
The cuts are expected to impact various departments, including content and marketing, as the company shifts its focus toward creating more original content. It has been noted that Disney has faced challenges in the streaming market, with increasing competition from rivals such as Netflix, Amazon Prime Video, and Apple TV+.
Mark Levenstein, SVP Production for Hulu, and Jayne Bieber, SVP, Production Management & Operations for Freeform, are leaving their positions as Carol Turner, EVP and head of production for ABC Signature, takes on an expanded role. This consolidation includes Network and Platform production for scripted television across Disney Entertainment. 20th Television EVP and head of production Nissa Diederich, and Nick Lombardo, SVP and head of production for FX, will now report to Turner.
In her new role, Turner will report to Eric Schrier, Disney Television Studios & Global Original Television Strategy for Disney Entertainment.
In addition, Elizabeth Newman, VP of Development overseeing Creative Acquisitions for Disney Television Studios, is leaving and the department will be dissolved. Its functions will be absorbed by the studios. The department was launched in 2021 to identify and secure the rights to upcoming and bestselling books, podcasts, news stories and other IP that can be developed for various platforms.
Levenstein, who has held his position at Hulu since 2019, previously worked at Paramount Pictures and HBO. Bieber started at Disney as a producer and became SVP Production Management and Operations for Freeform.
This consolidation reflects the trend of TV companies combining operations across multiple divisions. The cuts may affect the creative acquisitions department’s ability to acquire new content for Disney’s streaming platforms.
After the layoffs were announced, a spokesperson for Disney issued a statement that read: “As part of ongoing efforts to align our resources with our strategic priorities, we have made the difficult decision to reduce our workforce in certain areas of our General Entertainment division. We are committed to supporting our affected employees through this transition and will be providing them with severance packages and other resources.”
The spokesperson added, “These decisions are never easy, and we are grateful for the contributions made by each of these employees. We remain committed to investing in our content and growing our business, and these actions will help us achieve our goals.”
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The news of the layoffs has been met with mixed reactions from industry experts and analysts. Some have praised Disney for taking the necessary steps to adapt to the evolving market conditions, while others have criticized the company for its handling of the situation. One industry insider has said, “It’s a tough time for everyone in the industry, but these cuts seem particularly brutal. It’s hard to see how they will help Disney in the long run.”
Overall, the recent layoffs at Disney’s General Entertainment division reflect the challenges facing the streaming industry as a whole. As the market becomes increasingly crowded, companies must adapt quickly to remain competitive. For Disney, these layoffs are just the first step in a broader effort to streamline its operations and focus on creating original content that will attract viewers and drive growth in the coming years.
