Disney has declined to disclose details such as how many jobs will be cut and the extent to which Disney will reduce its annual film output.
"We are constantly evaluating our business," Disney spokeswoman Heidi Trotta said in a statement.
Some have found news of studio labor cuts strange, in light of the recent success of Disney films such as "Cars" and the newest release, "Pirates of the Caribbean: Dead Man's Chest," which set box office records with its debut last weekend, Kyser said. But Disney is no longer a regular box-office leader and has had a string of film misfires, he said.
"Every studio goes through a lean period," he said.
Scaling back operation costs will allow Disney to devote more time and resources to the quality of a smaller amount of pictures, Kyser said.
"It's just sort of focusing more and doing fewer but better pictures," he said.
With Disney as a significant employer in Glendale and Burbank, job cuts will likely affect the local economy, city officials said.
"Disney is a very important part of the Glendale economy," Glendale City Councilman Ara Najarian said. "They provide jobs and they are a premier corporate resident. I'm hoping that the job cuts and the layoffs are temporary and they will return to profitability."
Over the years the studio labor force has tended to fluctuate and will likely rebound at some point, Burbank City Councilman Jef Vander Borght said.
"The industry is cyclical by nature and we have seen this in the past and we hope that in the future those jobs will be returning," he said.
"It will be sad to see people lose any positions but, as long as I've lived in Burbank, which is 33 years or so, I've seen this happen several times, sadly. But to the extent that the jobs are cyclical in nature ? they will come and they will go."
