It's a smaller world at Disney


The Happiest Place on Earth wasn't so happy on Tuesday. The Walt Disney Company announced it was laying off 4,000 of its 120,000-plus worldwide employees, roughly three percent of its workforce, due to the struggling economy.

Walt Disney head Michael Eisner informed Disney employees via email Tuesday afternoon, that the cuts will effect "business units in all of our operations, as well as corporate staff." Eisner said strategic initiatives taken by the media giant over the last several months were not enough for the company to achieve "reasonable long-term growth and profitability." "We have been working equally hard to make sure we are operating in the most efficient way possible by cutting our costs in almost every area, but the economy has become more challenging in recent months and we must continue to seek ways to manage our businesses even more productively."

Disney executives say they plan to achieve the workforce reduction "to the greatest extent possible" through attrition and "voluntary separation programs." ABC and Walt Disney Studios executives were unclear how the layoffs will effect there divisions.
- Joe Schlosser