The Walt Disney Companyannual report 2001
Introduction
Financial Highlights
Letter to Shareholders
Financial Review
Key Businesses
DisneyHand
Parks and Resorts
Walt Disney Imagineering
Studio Entertainment
Media Networks
Consumer Products
Walt Disney International
Financials
Board of Directors
Walt Disney Company and Subsidiaries
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Financial review
Overview
Recent Performance
Shareholder Value
Operating Efficiencies
Capital Structure
Investor Returns
  Operating Efficiencies
The company continually strives to improve the efficiency of its operations. As part of those efforts, management set out to reduce overall company costs by $500 million by the end of 2001 and has met that target. The goal was met through cost-saving measures in each of Disney's business units and through corporatewide initiatives, including a strategic sourcing effort in purchasing, consolidation of accounting and finance functions and increased shared services across operating functions. In response to the softening in the economy that took place in 2001, Disney announced in March the elimination of approximately 4,000 full-time jobs through a combination of voluntary and involuntary reductions. These reductions should ultimately result in an additional $350 million in annual savings to the company. Disney is committed to an ongoing evaluation of its cost base even as it continues to invest for growth.