According to sources who are familiar with the matter, Walt Disney Co is set to commence a second wave of job cuts beginning on Monday, with the aim of eliminating 7,000 jobs to save $5.5 billion in costs.
The layoff plan is expected to affect “several thousand” jobs, which will be carried out from Monday through Thursday. Although the company has already culled 4,000 jobs, this round of reductions is set to occur across all business segments, including Disney Entertainment, ESPN, Disney Parks, Experiences, and Products. Despite this, it is believed that the hourly frontline workers employed at the parks and resorts will not be affected.
In February, Disney announced its plan to restructure the company and streamline its business approach, which involved returning decision-making to the creative executives. The aim was to create a more efficient and effective company. This comes as the entertainment industry has experienced a retrenchment since its initial embrace of video streaming. Established media companies lost billions as they launched competitors to Netflix Inc, leading to a cutback in spending.
The situation was further exacerbated when Netflix recorded its first loss of subscribers in a decade in early 2022, leading Wall Street to prioritize profitability over subscriber growth. Consequently, on March 27, Disney began notifying affected employees of the workforce reductions, stating that a second, larger round would occur in April, with a third round expected before the start of summer.