Disney Initiates Second Round of Layoffs, Cutting Thousands of Jobs
Apr. 24, 2024
The Walt Disney Co. is set to commence its second round of layoffs on Monday as part of its previously announced plan to eliminate 7,000 jobs across the company.
Key Points:
- Disney started its second round of layoffs on Monday, resulting in thousands of job cuts.
- The layoffs will impact multiple business divisions, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products.
- Hourly frontline workers at Disney’s theme parks are not expected to be affected by these cuts.
Details of the Layoffs
Disney will cut thousands of jobs this week, with notifications going out to affected employees starting Monday and continuing through Thursday, as confirmed by a Disney official to Spectrum News.
The layoffs will affect various business segments, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products. However, the company has stated that it does not expect the cuts to impact hourly frontline workers at its theme parks.
Scope of the Cuts
The job cuts will span across the country, from Burbank, California, to New York and Connecticut, indicating the wide-reaching impact of this decision.
Background and Strategy
In February, Disney CEO Bob Iger announced a plan to cut thousands of jobs as part of a strategy to reduce costs by $5.5 billion. Iger also revealed a plan to restructure the company into three divisions: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products, with the goal of returning decision-making to the company’s creative executives.
The first round of layoffs began in March, during which the company cut an undisclosed number of jobs. Among the initial cuts was the 50-person unit working on Disney’s “metaverse” strategies, according to the Wall Street Journal.
Future Layoffs
By the end of this week, Disney is expected to have cut approximately 4,000 jobs. A third round of cuts is anticipated before the summer to meet the 7,000 job reduction target.
Conclusion
Disney’s extensive layoffs are part of a larger cost-cutting strategy aimed at reshaping the company’s operations and reducing expenses. While these cuts will affect many segments of the company, hourly frontline workers at Disney’s theme parks are expected to remain unaffected. The restructuring and layoffs underscore the significant changes underway at one of the world’s largest entertainment companies.
