The Walt Disney Company is grappling with yet another wave of layoffs, as CEO Bob Iger attempts to steer the beleaguered entertainment giant through stormy waters. The latest round of cuts, which affects approximately 140 jobs across Disney’s TV properties, highlights the ongoing turbulence within the company as it continues to wrestle with strategic and financial woes.
In a move that underscores the severity of Disney’s situation, reports indicate that National Geographic will bear the brunt of the job cuts, shedding 60 positions or about 13% of its workforce. National Geographic, which recently drew criticism for its “Fauci” documentary on the controversial Covid-19 figure, is clearly feeling the strain of Disney’s cost-cutting measures. Other TV assets, including Freeform, are also affected by this downsizing effort.
But it’s not just the TV division facing scrutiny. Disney’s flagship news operations, including ABC News and its popular “Good Morning America,” are also under the knife. Executives have demanded a $19 million reduction in the news division’s budget, up from an earlier request of $17 million. The pressure is on for these cuts to be implemented by the end of Disney’s fiscal year in September.
The financial strain on Disney has been a recurring theme over recent years. The company has struggled with declining stock prices, partly due to a massive sell-off by activist investor Ike Perlmutter. Perlmutter, the former chairman of Marvel Entertainment, recently unloaded nearly 26 million shares of Disney stock, worth around $3 billion, sending the company’s share price into a downward spiral.
Adding to Disney’s troubles is a growing backlash from conservative consumers over the company’s increasing political activism and perceived “wokeness.” Disney’s clash with Florida Governor Ron DeSantis over parental rights in education was just one high-profile example of the company’s politically charged stance. The recent trend of injecting politically correct themes into Disney’s films and shows has turned off many traditional audiences.
Conservative commentator Megyn Kelly has been vocal in her criticism of Disney’s direction. Kelly highlighted the financial repercussions of Disney’s insistence on pushing woke agendas, pointing to recent box office flops such as “Elemental,” “Lightyear,” and “The Little Mermaid.” According to Kelly, these films, which incorporated controversial themes and characters, have failed to resonate with audiences, leading to significant financial losses.
“Apparently, there’s an analysis out there showing that films like ‘Lightyear,’ in which they decided to make Buzz Lightyear gay, and ‘The Little Mermaid,’ which is now woke, have performed terribly,” Kelly stated. “The people are not buying this content. They don’t want this content.”
In response to the criticism, Bob Iger has defended Disney’s approach, claiming that the company’s “number one priority” remains to entertain its audience, not to advance a political agenda. “I’ve been preaching this for a long time at the company before I left and since I came back that our No. 1 goal is to entertain,” Iger said. He dismissed the term “woke” as being used too liberally and insisted that the core mission of Disney is to produce entertaining content, not to serve as a platform for political messaging.
As Disney navigates these turbulent times, it remains clear that the company’s financial challenges are deeply intertwined with its evolving brand strategy. Whether the latest round of layoffs will help stabilize Disney’s position or further alienate its audience remains to be seen.
