Disney braces for hard times

Bracing for a worsening economy and further declines in ad spending, Walt Disney Co. executives have been meeting this week to prepare belt-tightening measures that could include job cuts, according to people familiar with the discussions.

Disney executives said Thursday that no decisions had been made on possible layoffs. People familiar with the situation have said reductions are being contemplated companywide. Disney spokespersons declined to comment.

Last week, ABC News President David Westin asked his staff in a memo to be more frugal “to make sure that we have all the resources we need to cover the news.” The cost-saving measures include recommendations that executives should fly “one grade below what they’re entitled to,” and “stay in ‘B’ level hotels.” Holiday parties would be scrapped this year, and the news division will cancel newspaper and magazine subscriptions.

Anne Sweeney, co-chair of Disney Media Networks, has asked senior staff to recommend possible cuts in case the economy deteriorates further. Other divisions have been asked to make similar evaluations, according to one executive.

Disney is not the only entertainment company to retrench in anticipation of recession. NBC Universal said two weeks ago said that it was planning to slash $500 million in spending -- 3% of its budget -- because it expected “unprecedented economic challenges” in the year ahead.

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dawn.chmielewski@latimes.com

meg.james@latimes.com