Report: Disney considers layoffs
Updated On: Jan 08 2013 08:44:32 AM EST
Walt Disney Company is considering layoffs as a way to cut costs, according to a report.
Reuters reports the entertainment giant started a cost-cutting review "several weeks ago" and options include layoffs at its studio and other departments.
A source told Reuters the company is weighing cuts in jobs it no longer needs due to "improvements in technology." Jobs could also be eliminated if they are considered redundant.
The report says most of the job cuts would come from Disney's studio division -- the company's least profitable division. Disney Interactive, which is responsible for Disney-branded video games, could also see job cuts. The interactive division lost $758 million dollars in the past three years, according to Reuters.
The report does not mention any possible layoffs at one of Central Florida's major attractions -- Walt Disney World. The company just invested an estimated $425 million dollars into the Orlando theme park to build the New Fantasyland expansion. Disney is also in the early stages of a second expansion -- an Avatar-themed park inside Animal Kingdom.
Reuters reports Walt Disney Company is also considering a hiring freeze at its studio division instead of layoffs.