Disney begins THIRD round of layoffs: More than 2,500 workers lose their jobs in latest layoffs
The Walt Disney Company has begun a third round of layoffs in which more than 2,500 workers will lose their jobs.
The planned cuts will affect most major divisions of the roughly $185 billion company, which was recently split into: Entertainment, ESPN, and Parks and Resorts.
They’re not targeting a specific section, though parks and resorts are largely unaffected, according to Deadline.
It comes after Disney CEO Bob Iger confirmed the company’s plans for three rounds of layoffs in March as it seeks $5.5 billion in savings.
Disney is cutting its workforce by 7,000 and the second wave of job cuts in April was the most brutal, with 4,000 positions cut.
The Walt Disney Company has begun a third round of layoffs in which more than 2,500 workers will lose their jobs
It comes after Disney CEO Bob Iger confirmed the company’s plans for three rounds of layoffs in March as it seeks $5.5 billion in savings.
Disney stock price has fallen 7.9% so far this month and is down to $91.57 per share
The new wave of layoffs, which began on Monday, will see more than 2,500 workers lose their jobs at the company.
Television has been hit the hardest before, but this time it is seeing only a small number of job cuts.
It comes as media companies grapple with the impact of the ongoing writers’ strike, which is forcing film and TV developments and production to halt.
disney has approximately 220,000 employees worldwide, including approximately 170,000 in the United States.
Its two other cooperative divisions ESPN and Parks, Experiences and Products will also see their workforce reduced.
But no frontline operational worker at its theme parks should lose their jobs.
The company revealed plans for layoffs and other austerity measures in February in a bid to achieve $5.5 billion in savings during a first-quarter earnings call.
Management finalized the details of the new structure in the following weeks and CEO Igor told staff in March in a memo that there would be three rounds of layoffs as the company struggled to cut its workforce by 7,000 people.
“This week, we are beginning to notify employees whose positions are impacted by the company’s workforce reductions,” he wrote.
“Leaders will communicate the news directly to the first group of affected employees over the next four days.
“A second, larger round of notifications will take place in April with several thousand additional staff reductions, and we expect to begin the final round of notifications before the start of summer to reach our target of 7,000 jobs.”
It’s unclear exactly how many jobs were cut in the first round, but the second round which began on April 24 saw 4,000 people lose their jobs.
The company has warned employees that a third round of layoffs is expected before the start of the summer.
And it is said that there will be a number of small cuts in the coming months.
It has removed dozens of titles from its streaming platforms in order to save more money.
The company has adapted to new leadership since Iger returned in November after retiring from the same position in 2020.
His appointment was prompted by the fall in the share price, which came after its streaming division suffered losses of $1.5 billion in the quarter ending October 1.
Disney cuts its workforce by 7,000 and the second round of April cuts was the most brutal with 4,000 positions cut
No frontline operational worker at its theme parks is expected to lose their jobs in the latest round of cuts
In February, it announced the biggest shake-up since its return in a bid to cut costs – $3 billion from content, excluding sports, and the remaining $2.5 billion from non-content.
Under his new leadership, a restructuring has seen him return authority to a number of creative executives, including top lieutenants Dana Walden and Alan Bergman, both of whom are considered candidates for his CEO role in the next two months. years.
ESPN President Jimmy Pitaro will lead this segment and Josh D’maro will retain control of Disney Parks.
Disney has had a tough time since the pandemic began, but it shared huge profits in the first quarter of this year.
Its revenue rose 8% to $23.5 billion from the first quarter of 2022 and its profit rose 11% to $1.3 billion.
But its share price has fallen 7.9% so far this month and is down to $91.57 per share.
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