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Disney Begins Third Round of Layoffs

Disney will soon begin the third stage of the campaign to reduce the workforce.

Disney Begins Third Round of Layoffs

Source: Pixabay.com

The media, citing their sources aware of the intentions of the company’s management, report that employees who will be affected by the upcoming layoffs will be notified of the relevant decisions by the end of this week.

According to preliminary information provided by insiders, more than 2,500 people will be laid off as part of the third and final stage of the giant’s workforce reduction in the entertainment sector. This round of layoffs was previously announced by Disney CEO Bob Iger.

So far, there is no information about which divisions of the company will be affected by the latest round of labor cuts. Disney representatives do not comment on upcoming actions aimed at adjusting the number of employees.

The first two waves of cuts in the entertainment industry giant’s workforce took place in March and April, respectively. As part of these stages of the comprehensive plan, about 4,000 employees were laid off. The process of reducing the workforce affected ESPN, the Disney entertainment division, Disney Parks, as well as the impressions and products department.

In February, the media reported that in total the company intends to lay off about 7,000 employees. This process should be completed before the beginning of summer.

According to the experts, the campaign to dismiss employees will allow the media giant to cut costs. Currently, the company is taking other measures aimed at reducing the level of costs associated with the implementation of activities. In total, Disney intends to save $ 5.5 billion. The reduction of the workforce provides savings of 30% of this amount, 50% of the target figure is reduced by decreased costs for marketing operations, and the remaining 20% is associated with the cancellation of part of the financing of technology, procurement, and other aspects of the company’s activities.

As of October 1 last year, the total number of employees of the media giant was 220,000 people. The stages of reducing the global workforce, which is being implemented in the spring of 2023, reduce it by 3%.

As we have reported earlier, Disney+ Streaming Service Loses 4 Million Subscribers in First Quarter.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.