Walt Disney Company has now started its second round of 203 layoffs. They began on Monday, with the company planning on laying off thousands more as it seeks to slash operating costs as America appears to be headed into a recession.
Fox Business reported that the company plans on cutting “several thousand” jobs this week through Thursday and was predicted, as CEO Bob Iger told Disney’s employees in a March memo that the company’s next two rounds of cuts would take place first in April and then again “before the beginning of the summer.”
Fox Business added that about 4,000 employees have been affected so far. That includes both Monday’s layoffs and the first round of cuts.
3,000 more Disney employees will likely be laid off by the company in the coming weeks, as CEO Bob Iger told analysts during a February earnings call that the company would lay off 7,000 employees to cut its operating costs by slashing its payroll. Reporting on that at the time it was announced, Fox Business reported:
Disney shares jumped on Thursday after the company announced it is trimming its payroll by some 7,000 employees, becoming the latest major firm to cut jobs as economic uncertainty weighs.
[…]The Mouse House said the move is part of a major restructuring aimed at saving the company billions of dollars, and was announced by CEO Bob Iger during the company’s first-quarter earnings call.
Disney said it plans to save $5.5 billion in its overhaul, cutting $1.5 billion in operating costs and another $3 billion from reductions in non-sports content — including the job cuts.
Fox Business added that the layoffs come as part of a reorganization within the company and that it was mainly the company’s corporate staff hit by the first round of layoffs, saying:
The first round of cuts occurred last month and impacted Disney’s corporate staff, as well as its Disney Entertainment and Disney Parks, Experiences and Products segments, Reuters reported.
[…]Iger also revealed that under its strategic reorganization, there will be three core business segments including Disney Entertainment, ESPN and Disney Parks, Experiences, and Products.
Disney joined a growing list of companies that have trimmed their workforce in recent months as economic uncertainty weighs on operations. The move follows Wall Street titans including Goldman Sachs and tech giants such as Amazon and Google parent Alphabet.
In the memo in which CEO Bob Iger announced layoffs, he said:
As I shared with you in February, we have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more effective, coordinated and streamlined approach to our business. Over the past few months, senior leaders have been working closely with HR to assess their operational needs, and I want to give you an update on those efforts.
This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions. Leaders will be communicating the news directly to the first group of impacted employees over the next four days. A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to commence the final round of notifications before the beginning of the summer to reach our 7,000-job target.
The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company.
For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this time.
In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future. Please know that our HR partners and leaders are committed to creating a supportive and smooth process every step of the way.
I want to thank each of you again for all your many achievements here at The Walt Disney Company.
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