Hundreds of jobs slashed in Disney restructuring

BURBANK ? The Walt Disney Corp. will cut about 650 studio jobs, officials announced Wednesday.

Those cuts will be spread out over Disney studios worldwide ? with the exception of Walt Disney Feature Animation, Pixar, Miramax, Buena Vista Music Group and Buena Vista Theatrical Productions, spokeswoman Heidi Trotta said.

“The individual employees affected will be talked to next week,” Trotta said.

Restructuring within the organization, notably the consolidation of its marketing and distribution arms, led officials to make the cuts, Walt Disney Studios Chairman Dick Cook said.

“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,” he said.

Disney is also slicing its annual movie production output roughly in half, releasing only about a dozen films each year between its Disney and Touchstone divisions, Trotta said.

A corresponding move to devote the majority of film production to the Disney brand name reflects a lessening focus on Touchstone films, which tend to be “quirky” films, such as “The Life Aquatic with Steve Zissou,” “Hidalgo,” and “The Alamo,” said Jack Kyser,Los Angeles County Economic Development Corp.’s chief economist.

“I think they feel more comfortable knowing that Disney is a well-known, popular brand and Touchstone has released some films that have been noticeable disappointments,” Kyser said.

Overall, the film industry is mired in a period of turmoil, Kyser said.

And fueling the instability in the industry are concerns about film piracy. Strong box office performances overseas mean studios must depend on foreign theater owners, whose activities may be more difficult to monitor, he said.

Questions are also circulating about ways to release films through other mediums, such as DVDs, which poses uncertainties as companies start to confront emerging technologies like High-Definition and Blu-rey, Kyser said.

As a part of the reconfiguration of the distribution and marking departments, the company also announced changes to top executive spots, Trotta said.

Oren Aviv, a 15-year Disney veteran who headed the marketing department, will take the helm as the president of film production.

Mark Zoradi was named president of the Walt Disney Motion Pictures Group and will lead distribution and marketing of all Disney and Touchstone films, Trotta said.

Marketing and distribution for Disney’s home entertainment market will now be overseen by Robert Chapek, as the new president of Buena Vista Worldwide Home Entertainment.