United States entertainment giant the Walt Disney announced on Tuesday it is cutting 650 jobs and will reduce the number of movies made each year as part of a major restructuring plan.
Walt Disney Studios chairperson Dick Cook said in a statement that the studio will produce and distribute approximately 10 Disney live-action and animated films a year, and two to three films a year from their Touchstone Pictures subsidiary.
Disney, whose Pirates of the Caribbean: Dead Man’s Chest smashed opening records in the North American box office this month, said the job cuts would be worldwide but did not specify where.
Disney spokesperson Heidi Trotta provided no further details.
Disney currently produces about 18 films a year, ranging from big hits like Pirates, which raked in $258-million since it opened ten days ago, and the Disney-Pixar animation hit Cars, which has earned $300-million worldwide.
The studio however has also had its share of expensive flops, including the comedy Stick It, the drama Annapolis, the horror flick Stay Alive and the animated The Wild.
Touchstone Pictures makes more mature, adult-oriented films for traditionally family-focused Disney.
“Cutbacks such as these are difficult on so many levels, and we will do everything in our power to make the transition as smooth as possible,” said Cook.
Disney also restructured several of its business units under two global organisations — Buena Vista Worldwide Marketing and Distribution and Buena Vista Worldwide Home Entertainment.
Five key Disney units — Walt Disney Feature Animation, Pixar Studios, Miramax Films, Buena Vista Music Group and Buena Vista Theatrical Productions — will not be affected by the reorganisation, the statement read.
Disney is not the only major movie studio taking a hit: in November Warner Brothers announced it was cutting up to 300 people, more than 5% of its workforce, due to a drop in profits. – AFP