The Walt Disney Co. has initiated the first of three rounds of job cuts that were previously announced earlier this year. It is expected that the cuts will result in approximately 7,000 workers being laid off from the company.
In a company-wide message obtained by FOX Business on Monday, Disney CEO Bob Iger updated employees on the layoffs, stating that the “first group of impacted employees” will be notified of their job loss “over the next four days.” The second round of layoffs will occur in April, with the third and final round taking place “before the beginning of the summer.”
These job cuts are part of a broader reorganization plan that Iger unveiled in February. The plan aims to create a more cost-effective and streamlined approach to the company’s operations and includes the restructuring of Disney’s Entertainment, ESPN, and Disney Parks, Experiences, and Products segments.
The job cuts will impact Disney’s corporate staff, as well as its Disney Entertainment and Disney Parks, Experiences, and Products segments. Iger expressed his gratitude and appreciation to every departing employee for their contributions and dedication to the company, stating that the layoffs are “not something we take lightly.”
The decision to implement these job cuts comes after Disney reported an 8% rise in revenue on an annual basis, amounting to $23.51 billion, during its first-quarter earnings call over a month ago. The company’s headcount reductions are the latest in a series of measures taken by businesses across industries to streamline operations and reduce costs in response to the ongoing COVID-19 pandemic.
