Walt Disney Studios announced that it is laying off staff to streamline operations.
“As part of an ongoing review to ensure that the Studios’ operational structure and economics align with the demands of the current marketplace, we have made the difficult decision to reduce our staffing levels in several divisions of the Studio," a studio spokesman said in a statement to TheWrap, confirming recent reports of layoffs.
It did not provide a number of employees losing their jobs.
Also read: Disney Stock Hits High Amid Reports of Cutbacks
The cuts will be across Disney's studio and consumer products divisions, according to multiple media reports. The layoffs are already underway, according to an individual with knowledge of the situation.
The studio has made other staff reductions recently. Earlier this year, Disney laid off 50 people from its video game division.
Reuters, which first broke the news, reported the cutbacks were being initiated as part of an internal audit that was ordered last year by Disney CEO and Chairman Bob Iger to streamline various departments. The hope is that Disney will emerge better able to meet the demands of more digital forms of distribution.
It is also an acknowledgement that as the studio produces fewer films and relies more on the output from its Marvel, Lucasfilm and Pixar arms, there is less of a need to maintain the same staffing levels. The studio will only release three films that it developed internally — "Oz: The Great and Powerful," "The Lone Ranger" and “Saving Mr. Banks.”
Wall Street has been bullish on Disney of late, with the stocking shattering all-time highs this week. It was trading at $59.82, up 1.17 percent, as of mid-day Wednesday.