Walt Disney is expected to cut about 200 positions at its movie studio unit, as it reduces its focus on home entertainment distribution of DVDs.
The cuts, which make up just under 5 per cent of its workforce, are expected to be announced next week. The bulk will fall on its headquarters in Burbank, California.
The film studio has been realigning its distribution structure over the past 18 months and is increasing its input of movies from Marvel (including X-Men: First Class) and Steven Spielberg's DreamWorks Studios.
DVD sales have been falling in the United States in the past year as more consumers use on-demand cable TV services and other digital outlets to watch movies at home.