About a week ago, The Wall Street Journal’s report on Disney layoffs stirred up a storm in the job market, suggesting that another massive shake-up at the entertainment giant would result in as many as 1,000 employees losing their posts. The nightmare has now been set in stone with confirmation coming straight from Disney’s CEO, Josh D’Amaro.
Preliminary information available beforehand didn’t provide much detail about the move’s scarring impact. Now, it has been revealed that Marvel Studios will suffer a consequential blow, with approximately 8% of the workforce expected to be fired, according to Deadline.
Disney CEO’s memo to employees confirms massive layoffs
On Wednesday (US time), D’Amaro announced that the company was looking to “streamline our operations” across various parts to “ensure we deliver the world-class creativity and innovation our fans value and expect from Disney,” according to his memo obtained by The Associated Press and Variety.
Josh D’Amaro succeeded Bob Iger as CEO in February. The latest devastation at the entertainment giant is expected to target the Burbank, California-based company’s traditional television businesses, including ESPN, as well as its movie studio. Moreover, employees in product and technology, as well as those in certain corporate functions, will also be hit hard as the company’s layoffs, which began on Tuesday, are slated to lead to 1,000 job cuts.
Marvel hit hard in Disney layoffs
This week’s layoffs at its parent company have sent shock waves through the offices of Marvel Entertainment in New York and Marvel Studios in Burbank, as per sources cited by Deadline. The reported 8% workforce cut is expected to severely hit major departments, including film and TV production, comics, franchise, finance, and legal.
According to Forbes, nearly the entire Academy Award-winning visual development team at Marvel Studios is being let go. Those hurt in the process include artists, illustrators, character designers, environment designers, and other technical specialists behind the look of iconic Marvel film and TV productions ranging from The Avengers to Guardians of the Galaxy to Daredevil. The changes at hand will be especially hard for employees in these teams to swallow, as most have been with Marvel for a decade or more, as per the Forbes report.
Only a small team will be retained from there to oversee the hiring of artists on a project-by-project basis. Some visual development artists are expected to switch from full-time roles to serving as outside contractors moving forward, according to Deadline.
Was the AI boom responsible for the new Marvel layoffs?
Citing sources familiar with the matter, Forbes reported that reasons involving AI don’t appear to be targeting specific jobs hit hard in the layoffs, despite other waves of reshuffling in the creative industries being influenced by the artificial intelligence boom.
Last year, word spread that Kevin Feige, the President of Marvel Studios, was powering an internal overhaul, pushing for Marvel to make fewer TV shows. The shift focused on stand-alone stories that don’t require prior knowledge of the Marvel Cinematic Universe. The studio boss has also been keen on refurbishing its movie slate after recent fumbles like Captain America: Brave New World, and fans’ longtime complaints that Marvel has “lost the plot” with its focus on multiverse sagas.
Consequently, the latest blow to Marvel is reportedly largely driven by this previously announced reduction in the Marvel Studios production slate, in addition to general cost-cutting and workforce reductions announced by the parent company.
Read Josh D’Amaro’s memo about Disney layoffs
“Dear Fellow Employees & Cast Members,
We have experienced a great deal of change these last few years, both at the company and across our industries. Knowing firsthand how these moments can bring uncertainty, I want to be open about some difficult news that will be communicated this week.
In January, we announced our unified enterprise marketing and brand organization, designed to serve consumers in an even more connected way. Over the past several months, we have looked at ways in which we can streamline our operations in various parts of the company to ensure we deliver the world-class creativity and innovation our fans value and expect from Disney. Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically-enabled workforce to meet tomorrow’s needs. As a result, we will be eliminating roles in some parts of the company and have begun notifying impacted employees.
I know this is hard. Those that will be leaving us have done meaningful work here and care deeply about this company. These decisions are not a reflection of their contributions, or of the overall strength of the company. Rather, they reflect our continual evaluation of how to more effectively manage our resources and reinvest in our businesses.
Compassion and respect remain at the heart of our company. As we move forward through this transition, our priority is to support those impacted and help each person navigate what comes next with resources, guidance, and direct support.
Despite these difficult decisions, I remain optimistic about where we’re headed as a company. I’m deeply grateful for all of your contributions and for the dedication, professionalism, and care you bring to your work each day. Even in challenging moments, you continue to demonstrate what makes Disney so special.
Josh“