Disney's second wave of layoffs to shave off thousand positions and save $5.5 billion
Walt Disney is set to commence a second round of layoffs, which will impact thousands of jobs, as part of their ongoing efforts to cut 7,000 positions and achieve cost savings of $5.5 billion.
According to Reuters, the company is planning to cut "several thousand" jobs by Thursday, as part of the latest round of reductions. This will bring the total number of jobs eliminated to 4,000, as confirmed by Disney officials.
The job cuts will be implemented across various business segments, including Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. However, it is expected that hourly frontline workers employed at the parks and resorts will not be affected by these reductions.
An internal memo, which Reuters has reportedly seen, stated that the issuance of layoff notices will persist over the course of the next several days.
"The senior leadership teams have been working diligently to define our future organisation, and our biggest priority has been getting this right, rather than getting it done fast," Disney Entertainment co-chairmen Alan Bergman and Dana Walden wrote in the memo to staff.
"We recognise that it has been a period of uncertainty and thank you all for your understanding and patience," they added.
In February, Disney announced its layoff plan, along with a reorganisation aimed at giving more decision-making authority to its creative executives. The objective of these measures is to establish a more streamlined approach to its business operations.
Since the initial adoption of video streaming in the entertainment industry, where established media companies incurred losses while launching competitors to Netflix, the sector has been consolidating its operations.
Following Netflix's first loss of subscribers in a decade in early 2022, media companies started to curb their spending, as Wall Street began prioritising profitability over subscriber growth.
Starting on March 27, Disney commenced the process of informing employees who would be affected by the workforce reductions. The company also stated that a second, larger round of layoffs would take place in April, with a third round expected before the summer season begins.