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DISNEY TO LAY OFF 250; OTHER STUDIOS MAY FOLLOW

June 7, 2011 by · Leave a Comment 

Noting sweeping changes in the way movies are being distributed these days — on small, inexpensive discs rather than bulky, expensive film reels — and a downturn in sales of DVDs, published reports said on Monday that Disney plans to lay off about 250 persons, mostly in its distribution and home video units. Several reports said that such cutbacks are expected to be felt industry wide. The London Financial Times quoted sources as saying that the cuts were “in response to wider structural changes that have wreaked havoc on entertainment industry business models.” Today’s (Tuesday) Los Angeles Times quoted industry analyst Harold Vogel as saying, “When you see these kinds of trends, frankly, you don’t need as many people in the companies.”