After a company-wide review, Disney is reportedly going to begin laying off workers in the studio and consumer products division. In an effort to lower costs of the age-old company.
The review and re-organization was ordered last year by the company's chief executive Bob Iger and CFO Jay Rasulo, according to Variety.
The exact number or when of layoffs will occure is unknown, according to Reuters, but according to two anonymous sources, the reductions will begin within the next two weeks, before the company releases their second quarter earnings on May 7.
The sources chose to remain anonymous because the company has not announced plans publicly at the current moment.
The home video division is expected to be hit hard as sales of physical discs have declined sharply. Many consumers have shifted to buying products digitally.
"Iger believes digital deals with companies like Netflix and Apple's iTunes are more profitable ways to offer up Disney's library of films and TV shows," Variety said.
Disney already began layoffs on Wednesday at the 30-year-old LucasArts games studio it inherited when it purchased the "Star Wars" franchise a few months ago.
They are focused on licensing the brand externally, Reuters reports.
On the studio side, Disney is relying on labels such as Marvel, Pixar, Dreamworks and LucasFilms to roll out most of their projects. Currently, Disney releases about eight to 11 films a year.
Since they will rely on outside labels, Disney initiated projects will drop, thus leading to the firing of many of its' executives in charge of development.
Disney has previously cut staffers in the past, firing 200 people from Disney Interactive and an additional 100 staffers elsewhere in the previous years. They have also cut jobs in their publishing unit.
