Disney Begins Second Round of Layoffs as Company Aims to cut 7000 Jobs by Summer – Disney (DIS) plans to lay off thousands more workers this week as part of a 7,000-job cut by the summer. This week marks the start of the second wave of layoffs, which began the week of March 27. According to Disney officials, 4,000 jobs would be lost after the second wave is completed.
The layoffs will affect all business sectors of the corporation, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products. They’ll take place all across the country, from Burbank to New York and Connecticut. Disney CEO Bob Iger, who returned to the board in November, has remained focused on profitability as investors move their attention away from subscriber growth and toward profits.
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After spending an estimated $33 billion on content last year, the company’s direct-to-consumer division lost $4 billion or more in fiscal 2022, which ended Oct. 1. Since then, Iger has emphasized the clear relationship between content decisions and financial performance, particularly in light of a hard macroeconomic environment that has pushed rival media conglomerates, such as Warner Bros.
Discovery (WBD) and Paramount Global (PARA), to implement their own cost-cutting strategies. Disney previously revealed plans to cut 7,000 workers in order to save $5.5 billion in costs. The corporation completed its first round of layoffs at the end of March, with additional layoffs planned before the start of the summer to meet the target.
In addition to the February layoffs, Disney announced intentions to restructure the firm into three primary business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products. Iger stated at the time that the new strategic organization “will result in a more cost-effective coordinated and streamlined approach to our operations.” On May 10, Disney will report its fiscal second-quarter profits.