Disney To Cut Thousands of Jobs in Second Wave of Layoffs
Hold on to your Mickey Mouse ears, folks. The Walt Disney Co is about to embark on a second wave of layoffs, and it’s going to be a doozy. According to insiders, thousands of jobs are on the chopping block as the company strives to eliminate 7,000 positions and save a whopping $5.5 billion in costs.
The cuts will be happening all week, with “several thousand” jobs expected to be eliminated by Thursday. This latest round of reductions brings the total number of jobs culled to 4,000, and they’ll be happening across all of Disney’s business segments, including Disney Entertainment, ESPN, and Disney Parks, Experiences and Products.
But don’t worry, hourly frontline workers employed at the parks and resorts are expected to be safe from the cuts. An internal memo seen by Reuters said the layoff notices will continue over the next several days, so keep an eye out if you’re a Disney employee.
Disney Entertainment co-chairmen Alan Bergman and Dana Walden wrote in the memo to staff, “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 recognize that it has been a period of uncertainty and thank you all for your understanding and patience.”
Disney announced its layoff plan in February, along with a reorganization that returned decision-making to its creative executives. The goal is to create a more streamlined approach to its business, but it’s not without its casualties.
The entertainment industry has been hit hard since the rise of video streaming, and Disney is no exception. With established media companies losing billions as they launched competitors to Netflix Inc, the pressure has been on to rein in spending and prioritize profitability over subscriber growth.
Disney began notifying employees affected by the workforce reductions on March 27, and a third round is anticipated before the start of summer. It’s a tough time for everyone, but we’re confident that Disney will come out on top.
Reporting by Dawn Chmielewski in Los Angeles; Editing by Sonali Paul and Bernadette Baum
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