Business
Disney to cut hundreds of employees in latest round of layoffs
Walt Disney Co. launched another deep round of layoffs on Monday, notifying several hundred Disney employees in the U.S. and abroad that their jobs were being eliminated amid an increasingly difficult economic environment for traditional television.
People close to the Burbank entertainment giant confirmed the cuts, which are hitting film and television marketing teams, television publicity, casting and development as well as corporate financial operations.
The move comes just three months after the company axed 200 workers, including at ABC News in New York and Disney-owned entertainment networks. At the time, the division said it was trimming its staff by 6% amid shrinking TV ratings and revenue.
Disney declined to specify how many workers were losing their jobs. The cutbacks — the fourth round of layoffs in less than a year — come after Disney Chief Executive Bob Iger acknowledged to Wall Street that Disney had been pumping out too many shows and movies to compete against Netflix.
The programming buildup accelerated as the company prepared to launch Disney+ in late 2019, and it bulked up its staff to handle the more robust pipeline.
But the company has since retrenched, recognizing the need to focus on creating high-quality originals that meet Disney’s once lofty standards.
Disney has faced significant budget pressures after promising investors that its direct-to-consumer services — Disney+, Hulu and ESPN+ — would achieve profitability last year. The company lost billions of dollars over several years in its strategic shift to streaming, but it reached its goal to make money on streaming last fall.
Still, streaming subscribers can be fickle, creating a daunting new reality for the company that could long count on cable TV subscriptions as one of its most reliable economic pillars. Cord-cutting has taken a heavy toll.
The entertainment giant — one of Southern California’s largest private sector employers — has eliminated more than 7,000 jobs since 2023.
The traditional TV and film units felt the brunt of the downsizing during the last year. In July, the company slashed about 140 workers, primarily in its Disney entertainment unit. The company’s TV stations also lost staff members and ABC News shed about 40 employees last October.
ABC News largely escaped this week’s cuts, according to one knowledgeable person who was not authorized to discuss the internal moves.
ABC News still boasts healthy audiences for its newscasts, but the ABC television network and Disney-owned entertainment channels have seen dramatic viewer defections as consumers switch to streaming services, including Netflix, Paramount+ and Disney+.
ABC’s prime-time schedule has lost considerable steam. For the just-ended broadcast television season, ABC mustered only three shows in Nielsen’s top 20 rankings. “Monday Night Football on ABC” ranked seventh by averaging more than 10 million viewers, “Saturday Night Football” ranked 18th with 7.4 million viewers and freshman drama “High Potential” made the cut at 20th with an average audience of 7.1 million, according to Nielsen.
Monday’s eliminations come three weeks after Disney presented its fall lineup to advertisers, leaning heavily on its sports stars including Peyton and Eli Manning rather than actors from its entertainment programming.
ESPN was spared the ax as the sports unit is preparing for its high-stakes launch this fall of a stand-alone ESPN streaming service, the knowledgeable person said.
The move comes amid a strong run for Disney’s film studio, which has celebrated blockbuster box office results from its live-action “Lilo & Stitch,” which has earned $610 million in ticket sales globally, according to Box Office Mojo.
A month ago, Disney issued strong fiscal second-quarter earnings. The company reported $23.6 billion in revenue for the three months that ended March 29, a 7% increase compared with the same quarter a year earlier. Earnings before taxes totaled $3.1 billion, up $2.4 billion from last year.
Hollywood trade site Deadline first reported the news of the latest Disney cuts.
The landscape has been increasingly challenging for traditional companies. In addition to Disney, Warner Bros. Discovery, Paramount Global and even such tech companies as Amazon and Apple have fired workers.
In late May, NBCUniversal cut 54 jobs in Los Angeles, according to state employment records. Six Flags Entertainment Corp. laid off 140 workers.
Disney shares closed down 9 cents to $112.95.
Business
Supreme Court may block thousands of lawsuits over Monsanto’s weed killer
WASHINGTON — The Supreme Court announced Friday it will hear Monsanto’s claim that it should be shielded from tens of thousands of lawsuits over its weed killer Roundup because the Environmental Protection Agency has not required a warning label that it may cause cancer.
The justices will not resolve the decades-long dispute over whether Roundup’s key ingredient, glyphosate, causes cancer.
Some studies have found it is a likely carcinogen, and others concluded it does not pose a true cancer risk for humans.
However, the court may free Monsanto and Bayer, its parent company, from legal claims from more than 100,000 plaintiffs who sued over their cancer diagnosis.
The legal dispute involves whether the federal regulatory laws shield the company from being sued under state law for failing to warn consumers.
In product liability suits, plaintiffs typically seek to hold product makers responsible for failing to warn them of a known danger.
John Durnell, a Missouri man, said he sprayed Roundup for years to control weeds without gloves or a mask, believing it was safe. He sued after he was diagnosed with non-Hodgkin’s lymphoma.
In 2023, a jury rejected his claim the product was defective but it ruled for him on his “strict liability failure to warn claim,” a state court concluded. He was awarded $1.25 million in damages.
Monsanto appealed, arguing this state law verdict is in conflict with federal law regulating pesticides.
“EPA has repeatedly determined that glyphosate, the world’s most widely used herbicide, does not cause cancer. EPA has consistently reached that conclusion after studying the extensive body of science on glyphosate for over five decades,” the company told the court in its appeal.
They said the EPA not only refused to add a cancer warning label to products with Roundup, but said it would be “misbranded” with such a warning.
Nonetheless, the “premise of this lawsuit, and the thousands like it, is that Missouri law requires Monsanto to include the precise warning that EPA rejects,” they said.
On Friday, the court said in a brief order that it would decide “whether the Federal Insecticide, Fungicide, and Rodenticide Act preempts a label-based failure-to-warn claim where EPA has not required the warning.”
The court is likely to hear arguments in the case of Monsanto vs. Durnell in April and issue a ruling by late June.
“The Supreme Court decision to take the case is good news for U.S. farmers, who need regulatory clarity,” said Bayer CEO Bill Anderson. “It is time for the U.S. legal system to establish that companies should not be punished under state laws for complying with federal warning label requirements.”
Monsanto says it has removed Roundup from its consumer products, but it is still used for farms.
Last month, Trump administration lawyers urged the court to hear the case.
They said the EPA has “has approved hundreds of labels for Roundup and other glyphosate-based products without requiring a cancer warning,” yet state courts are upholding lawsuits based on a failure to warn.
Environmentalists said the court should not step in to shield makers of dangerous products.
Lawyers for EarthJustice said the court “could let pesticide companies off the hook — even when their products make people sick.”
“When people use pesticides in their fields or on their lawns, they don’t expect to get cancer,” said Patti Goldman, a senior attorney. “Yet this happens, and when it does, state court lawsuits provide the only real path to accountability.”
Business
Why is L.A.’s salad titan, Sweetgreen, wilting?
Sweetgreen’s salad business isn’t as fresh as it used to be.
Not long ago, the Los-Angeles-based company’s fresh bowls of fancy salads were all the rage, and its shares soared on hopes that salad-slinging robots could make it more profitable.
Last year was tough, though, as enthusiasm for the brand waned and cash-strapped diners abandoned fast-casual options for cheaper fast food and homemade meals.
Sweetgreen’s same-store sales slid 9.5% last quarter, even as it increased portion sizes and tried new menu items — including French fries, which flopped. It laid off 10% of its support center workforce in Los Angeles, and one of its founders stepped down.
Over the last 12 months, Sweetgreen shares have tumbled more than 75%. The stock closed Thursday at $8.
“Sweetgreen is more of a premium health product, and it’s going to cost more than a Big Mac,” said retail expert Dominick Miserandino, who runs the company Retail Tech Media Nexus.
“The average consumer, when they’re hit with survival-type questions about basic necessities, wellness is not going to be No. 1 for them,” he said.
Younger consumers are showing less interest in Sweetgreen salads at the same time as tariffs and other factors are driving inflation. The company fell short of Wall Street’s expectations last quarter with a net loss of $36.1 million on revenue of $172.4 million.
“Performance was impacted by softer sales,” Sweetgreen co-founder and Chief Executive Jonathon Neman said in November. “This was coupled with lighter spending among younger guests.”
As it braces for the future, Sweetgreen decided to sell the food automation company it bought only a few years ago. Sweetgreen closed the sale of its automated kitchen technology, dubbed Infinite Kitchen, to the takeout and food delivery company Wonder Group last month.
Spyce, the business unit behind Infinite Kitchen, was sold for close to $200 milion in cash and shares of Wonder’s Series C preferred stock. Sweetgreen bought Spyce in 2021 for about $70 million. Sweetgreen will continue to use the technology in some restaurants. The tech uses automatic conveyor belts to assemble salads and other meals.
“The sale marks a strategic milestone for Sweetgreen, enabling the company to reinvest in key priorities and focus on growth and operational efficiency,” the company said in a news release.
Sweetgreen did not respond to a request for comment.
Sweetgreen was founded in 2007 in Washington by Georgetown students looking to make healthy food as convenient as fast food. It moved its headquarters to Los Angeles in 2016.
The chain has grown to more than 280 stores in the U.S.
California — with 56 Sweetgreens — is the state with the most locations.
The company made its initial public offering in 2021, and a day later was valued at nearly $6 billion. Sweetgreen is now worth around $900 million.
Fast-casual eateries — considered a step above fast food but more affordable than a full-service restaurant — once boomed in popularity. But value-seeking consumers are now turning to other options, said Evert Gruyaert, head of U.S. restaurants and food service at Deloitte.
“There is extremely strong competition and pressure coming from quick-service brands, and casual dining now has very compelling value offers too,” he said. “Fast casual is really squeezed in the middle.”
Fast-casual chains such as Cava and Newport Beach-based Chipotle popularized the customizable lunch bowl, usually including a protein, grain, and veggies.
The idea took off after Chipotle founder Steve Ells noticed that customers were opening up their burritos and asking for a fork. The Mexican chain launched bowls in 2003, paving the way for the Mediterranean bowl destination Cava to open in 2006.
Sweetgreen’s menu includes a range of salads as well as warm bowls featuring rice, salmon and chicken. A caramelized garlic steak bowl sells for $17.95, and a garden cobb salad is $15.75.
With tax, tip and a drink, customers could easily spend more than $20 on lunch.
The trend of lunching on big bowls of healthy ingredients has lost some momentum in recent years.
On social media, some diners are complaining about “slop bowls,” saying that lunch shouldn’t be just a collection of ingredients thrown in a bowl.
Chipotle shares have slid about 30% over the last year and Cava shares have fallen close to 40% over the same time frame. Ells, who left Chipotle in 2020, returned to sandwiches and handheld foods in his new venture Counter Service.
On an earnings call in November, Sweetgreen’s Neman said the chain’s new handheld product will begin market testing early this year.
Whether in a bowl or on bread, much of Sweetgreen’s appeal comes from the perception that it’s a healthy choice. But even in Southern California, where wellness is often top of mind, its offerings are failing to attract as many customers as they once did.
“If you’re financially pushed to the limit, you need fast food to get you through the day at the cheapest possible price,” Miserandino said.
Millennials and Gen. Z, who according to Neman make up about a third of Sweetgreen’s customer base, are facing a difficult job market and cutting back on spending more than their older peers.
Sweetgreen is trying to find a way back into the sweet spot of salad consumers. It debuted a new nutrient-dense menu, created in collaboration with the wellness company Function.
The menu, which follows a recent surge in demand for protein and other macronutrients, includes options with extra iron, omega-3 fatty acids and antioxidants.
“Amid a challenging macro backdrop, our priorities remain clear,” Neman said in November. “I am extremely confident that our leadership team and focused strategy will lead Sweetgreen back to sustained, profitable growth.”
Business
Lucasfilm President Kathleen Kennedy to step down
After nearly 14 years at the helm, Lucasfilm President Kathleen Kennedy will step down this week, marking a major — though expected — changing of the guard at the Walt Disney Co.-owned “Star Wars” studio.
In her place, current Lucasfilm Chief Creative Officer Dave Filoni has been named president and will retain his creative title and Lucasfilm Business President and General Manager Lynwen Brennan has been named co-president, Disney said Thursday. The pair will co-lead the San Francisco-based studio and will report to Disney Entertainment Co-Chairman Alan Bergman.
“When George Lucas asked me to take over Lucasfilm upon his retirement, I couldn’t have imagined what lay ahead,” said Kennedy, 72, in a statement Thursday. “It has been a true privilege to spend more than a decade working alongside the extraordinary talent at Lucasfilm. Their creativity and dedication have been an inspiration, and I’m deeply proud of what we’ve accomplished together. I’m excited to continue developing films and television with both longtime collaborators and fresh voices who represent the future of storytelling.”
The move comes amid widespread speculation about Kennedy’s future. Handpicked in 2012 by “Star Wars” and “Indiana Jones” creator George Lucas to helm the company he founded, Kennedy oversaw the expansion of the “Star Wars” franchise into a new trilogy, two spin-off movies, as well as several TV shows, including “The Mandalorian” and “Andor.” Under her leadership, the studio also grew its presence in Disney’s theme parks with “Star Wars”-themed lands in both Anaheim’s Disneyland Resort and Walt Disney World in Florida.
But the expansion, and her tenure, were not without setbacks.
2018’s “Solo: A Star Wars Story” grossed a disappointing $392.9 million at the box office, after a fraught production in which the studio replaced the directors during shooting. Several “Star Wars” projects have been announced over the years with big names attached, only to be delayed or dropped, including a planned trilogy with “Game of Thrones” showrunners David Benioff and D.B. Weiss.
Kennedy told The Times in 2019 that perceptions of director churn at Lucasfilm were overblown.
“Nobody in our business develops something with one person, that’s it, and everything goes perfectly,” she said at the time. “That’s a fairly common part of the process. We fall under incredible scrutiny because it’s ‘Star Wars.’ Because of the quality I’m striving for, I’m reaching out to top talent, and vice versa.”
Kennedy also had to weather scrutiny from die-hard fans about the new direction of the franchise. Nevertheless, the newest “Star Wars” trilogy grossed a collective $4.3 billion in worldwide box office revenue, with spinoff “Rogue One: A Star Wars Story” hauling in more than $1 billion globally and leading to the popular series “Andor.”
She will continue as producer of Lucasfilm’s next two theatrical films — May’s “Star Wars: The Mandalorian and Grogu” and “Star Wars: Starfighter,” which is being helmed by “Deadpool & Wolverine” director Shawn Levy and set for release in 2027.
“The Mandalorian and Grogu” will mark the first “Star Wars” theatrical film since 2019’s “Star Wars: Episode IX — The Rise of Skywalker.” During production for that movie, Kennedy asked Disney Chief Executive Bob Iger if the company could take a pause on “Star Wars” films to give them more time develop new storylines. At that point, the company had released at least one “Star Wars” movie a year since 2015, while Lucas himself had previously waited at least three years between films. (Since 2019, the studio did release “Indiana Jones and the Dial of Destiny,” as well as several “Star Wars”-adjacent series and and streaming films, including some Lego movies and an ILM documentary.)
“When we acquired Lucasfilm more than a decade ago, we knew we were bringing into the Disney family not only one of the most beloved and enduring storytelling universes ever created, but also a team of extraordinary talent led by a visionary filmmaker — someone who had been handpicked by George Lucas himself, no less,” Iger said in a statement Thursday. “We’re deeply grateful for Kathleen Kennedy’s leadership, her vision, and her stewardship of such an iconic studio and brand.”
Both Filoni and Brennan step into their new roles as Lucasfilm veterans.
Filoni, who frequently wears a cowboy hat in public and is thus widely recognizable to fans, was chosen by Lucas in 2005 to build the studio’s animation business. He created Lucasfilm’s first series, “Star Wars: The Clone Wars” as well as “Star Wars Rebels,” was the executive producer on shows including “The Mandalorian” and “Ahsoka” and is producer and writer of the “The Mandalorian and Grogu” film.
Brennan joined Lucasfilm visual effects studio Industrial Light & Magic in 1999 and currently leads business strategy, franchise and production operations, as well as ILM’s expansion worldwide.
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