According to individuals familiar with the situation, Walt Disney will start a second round of layoffs on Monday that would affect thousands of employment as part of an effort to cut 7,000 jobs and save $5.5 billion in expenses.
According to Disney officials, the firm will eliminate “several thousand” jobs by Thursday, bringing the total number of employment cuts to 4,000.
According to the sources, the cuts will touch all of the company’s business units, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products, although they are not anticipated to affect the hourly front-line employees who work at the theme parks and resorts.
According to an internal memo obtained by Reuters, layoff notifications will keep coming over the coming days.
Disney Entertainment co-chairmen Alan Bergman and Dana Walden stated in the message to staff that “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.”
They acknowledged that there had been a period of uncertainty and thanked everyone for their patience and understanding.
Disney unveiled its layoff plan in February along with a reorganization that gave its creative executives back control of decision-making. It wants to develop a business strategy that is more organized.
Since the early adoption of video streaming, when traditional media businesses lost billions as they introduced rivals to Netflix Inc (NFLX.O), the entertainment industry has made cuts.
When Netflix reported its first subscriber drop in a decade at the beginning of 2022, media businesses started to cut down on expenditure as Wall Street started to put profitability ahead of customer growth.
Disney started informing affected employees of the personnel reductions on March 27 and announced a second, more extensive round would follow in April. Before summer officially begins, a third round is expected.