Disney Parks, Experiences, and Products, as well as Disney Entertainment, will all be affected by the layoffs. According to Reuters’ sources, Disney started laying off thousands of employees on Monday. With this round of layoffs, we will have reduced staff by almost 4,000 people.
The news follows rumors that the media conglomerate is cutting 7,000 positions in an effort to save $5.5 billion. According to the sources, layoffs will affect all of the company’s divisions except for the frontline hourly workers at the theme parks and resorts. These divisions include Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products.
In February, Disney announced a massive restructuring that included layoffs and gave more power to the company’s creative executives. Its aim is to provide a less complicated method of conducting business.
Since the early ecstatic acceptance of video streaming, when major media businesses lost billions as they formed competitors to Netflix Inc., the entertainment sector has pulled back.
Disney Plans To Fire Off Thousands Of Employees In A New Round Of Cuts
Sources say that on Monday, Walt Disney Co will begin a second round of layoffs as part of its plan to eliminate 7,000 positions and save $5.5 billion in expenditures.
The layoffs will begin on Monday and continue through Thursday, and they are likely to affect “several thousand” workers. As a result of the latest round of layoffs, Disney will have eliminated 4,000 positions, according to corporate officials.
According to the sources, layoffs will occur across the company’s business areas, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products, but will not affect the hourly frontline employees at the parks and resorts.
In February, Disney proposed a massive restructuring and layoff plan that would return power to the company’s creative executives. The company hopes that by doing this, it can run its operations more efficiently.
Since the early ecstatic acceptance of video streaming, when traditional media businesses lost billions as they formed competitors to Netflix Inc., the entertainment sector has retreated.
After Netflix reported its first drop in members in a decade at the beginning of 2022, the media industry began cutting back on investment as Wall Street prioritized profitability over subscriber growth.
Disney started notifying affected workers on March 27 that a second, larger round of layoffs will take place in April. Before the summer begins, a third round is expected.
A Company Memo Obtained By Reuters Indicated That Other Layoff Announcements Were Forthcoming
Disney Entertainment co-chairmen Alan Bergman and Dana Walden wrote to employees, “The senior leadership teams have been working diligently to define our future organization, and our biggest priority has been getting this right, rather than getting it done fast.”
We know this has been a trying time for everyone, so we appreciate your bearing with us. Disney’s layoff plan and restructure, which gave more power to the company’s creative executives, were both unveiled in February. The organization hopes that by simplifying its processes, it can increase productivity.
Established media businesses lost billions as they formed competitors to Netflix Inc (NFLX.O), and the entertainment sector has subsequently pulled back from its early embrace of video streaming.
The media industry began cutting back on investment after Netflix reported its first drop in subscribers in a decade in early 2022 and investors began putting more emphasis on profits than on audience growth.
Disney started notifying affected workers on March 27 and indicated a second, larger wave would follow in April. Before the summer officially begins, a third round is expected.
On Monday, Reuters reported that Disney has launched its second round of layoffs, which will affect several thousand employees. With these additional cuts, we will have eliminated about 4,000 jobs. Disney announced earlier this year that, as part of a bigger restructure, it would eliminate 7,000 jobs in order to save the business $5.5 billion.