Posted in: Comics, Movies, TV | Tagged: disney, marvel

Will Disney Move to "Culture of Efficiency" Mean More Marvel Layoffs?

Disney CFO Hugh Johnston noted that more layoffs at Marvel and other areas were still possible as it moves towards "a culture of efficiency."

Less than a month after word came down that The Walt Disney Company would be laying off approximately 1,000 employees – with Marvel Studios and Marvel Entertainment being hit particularly hard – it seems the possibility of more layoffs is still on the table as the company moves towards what it refers to as "a culture of efficiency. During Disney's quarterly earnings call with Wall Street analysts on Wednesday, new CEO Josh D'Amaro and CFO Hugh Johnston were asked by call moderator and investor relations chief Ben Swinburne if they were looking at this moment to "take a fresh look" at how the company operates and what areas had the most room for improvement. While D'Amaro spotlighted an increased focus on how AI can benefit the creative process and the company's theme parks, Johnston focused on how decisions have and could continue to impact the company directly.

"These are always difficult exercises for the organization, but let me assure you, this management team is acutely focused on this," Johnston shared. Noting that the company was eyeing a stronger financial focus on content and technology to help drive growth, Johnston said that last month's staff reductions demonstrated "a deliberate shift toward a more agile, technologically enabled and resilient workforce." As for how that could translate when it comes to additional layoffs or areas of the company feeling the hit, Johnston noted that Disney's drive to streamline and be more technologically efficient is "an ongoing exercise and a muscle we're [Disney] building."

It was clear that D'Amaro and Johnston were looking to drive home the point that Disney is looking to (in Johnston's words) "build a culture of efficiency and we want to fund growth opportunities from within the existing expense base." The CFO continued, "Across the company, where aligning structures, capabilities, and talent to what the business needs next, we're simplifying where we can while investing where it matters most, and we're using technology to fundamentally change how work gets done. We have been and will continue to look for these types of opportunities to redeploy capital, both financial and human, to areas we see driving the highest returns for shareholders."

Though the company is "focused across several areas" when it comes to evaluating any additional cuts or changes, Johnston offered one example.  "One of the ones I find particularly interesting is an initiative to implement precision labor demand forecasting across our theme parks. We think that one has the potential to create a better guest experience, a better employment experience, and also better cost management for the company. So we're very excited about that," Johnston shared.

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