[Global] Disney layoffs reach 7,000 target with more planned

The Walt Disney Company has reached its 7,000 layoffs goal, with notices to the remaining employees impacted in its third round of job cuts handed out at the end of May right before Memorial Day weekend, Variety reports.

It was Disney’s intention to conclude companywide layoffs - primarily focused on the media divisions and leaving parks largely untouched - before the summer.

Now the company reportedly has plans to eliminate further roles internationally over a period of time but Disney has concluded the benchmark it set in February, soon after Bob Iger’s return as CEO following Bob Chapek’s ousting.

Mr Iger announced an extensive cost-cutting strategy, with the first round of staff reductions beginning March 27. The second wave - bringing Disney’s total cuts to 4,000 - started the week of April 24 while the third and final concluded on May 26.

The 7,000 layoffs reportedly represent 3.2 per cent of Disney’s global workforce of around 220,000 as of October 1, 2022. They form part of the Mouse House’s efforts to achieve about $5.5 billion in cost savings. Of that, $2.5 billion represents “non-content costs” (including labour) and $1 billion of those targeted cost reductions were already underway in February, according to Mr Iger. 

Disney is aiming for an annualised reduction of $3 billion in non-sports content costs, to be realised over several years.

The cuts are taking effect as the WGA/SAG-AFTRA strike and Disney’s move to pull content from its streaming platforms continue. They follow Disney’s reorganisation into three core business segments: Disney Entertainment, ESPN and Disney Parks, Experiences and Products. 

Source: Variety

(Links via original reporting)

The Walt Disney Company has reached its 7,000 layoffs goal, with notices to the remaining employees impacted in its third round of job cuts handed out at the end of May right before Memorial Day weekend, Variety reports.

It was Disney’s intention to conclude companywide layoffs - primarily focused on the media divisions and leaving parks largely untouched - before the summer.

Now the company reportedly has plans to eliminate further roles internationally over a period of time but Disney has concluded the benchmark it set in February, soon after Bob Iger’s return as CEO following Bob Chapek’s ousting.

Mr Iger announced an extensive cost-cutting strategy, with the first round of staff reductions beginning March 27. The second wave - bringing Disney’s total cuts to 4,000 - started the week of April 24 while the third and final concluded on May 26.

The 7,000 layoffs reportedly represent 3.2 per cent of Disney’s global workforce of around 220,000 as of October 1, 2022. They form part of the Mouse House’s efforts to achieve about $5.5 billion in cost savings. Of that, $2.5 billion represents “non-content costs” (including labour) and $1 billion of those targeted cost reductions were already underway in February, according to Mr Iger. 

Disney is aiming for an annualised reduction of $3 billion in non-sports content costs, to be realised over several years.

The cuts are taking effect as the WGA/SAG-AFTRA strike and Disney’s move to pull content from its streaming platforms continue. They follow Disney’s reorganisation into three core business segments: Disney Entertainment, ESPN and Disney Parks, Experiences and Products. 

Source: Variety

(Links via original reporting)