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Despite the international success of "Pirates of the Caribbean: on Stranger Tides," at least 200 employees will soon be exiting through the gift shop, as Disney's belt-tightening requires the Magic Kingdom to further reduce its population.
The layoffs will obviously not occur in Disney's resort and theme park divisions, as employment there is at its peak during the summer months. And Disney movies aren't doing that bad this summer either, so there's no need for the filmmakers to fear for their jobs. It's those in distribution, home entertainment and product management that need to be worried.
With digital distribution becoming so popular and more people downloading movies to watch at home, rather than renting or buying DVDs, other studios, such as Lionsgate, are also reducing staff in traditional home entertainment and distribution. Recently, Lionsgate let go of about 2 percent of its staff. These layoffs seem to be more the result of changes in technology rather than changes in the economy.
According to entertainment news website The Wrap, it's also about changes in the executive suite. This is the second round of layoffs since Rich Ross became the company chairman, and began making organizational changes. Last January, about 1 percent of the studio staff was let go.
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