Walt Disney Co. began letting go thousands of employees on Monday in the entertainment giant’s ongoing push to cut about 7,000 jobs this year.
(Bloomberg) — Walt Disney Co. began letting go thousands of employees on Monday in the entertainment giant’s ongoing push to cut about 7,000 jobs this year.
This is the second of what’s expected to be three rounds of cuts, Disney said in a statement. The first reductions to Disney’s 220,000-person workforce came in March. This round, which will last through Thursday, should bring the total positions eliminated to around 4,000, the company said.
Disney’s latest job reductions, which Bloomberg reported last week, are part of Chief Executive Officer Bob Iger’s effort to save $5.5 billion in annual costs. The company is seeking to pare its commitment to general entertainment and prioritize franchises and well-recognized brands. Disney Entertainment, home to the company’s non-sports-related film and TV businesses, is a focus of the reductions.
Cuts are coming to all of Disney’s divisions, from the company headquarters in Burbank, California, to Connecticut, where its ESPN sports networks are based.
On Monday, ESPN began notifying employees who are being fired. This round of layoffs will focus on the sports network’s behind-the-scenes employees, according to a person with knowledge of the matter. Around midyear, ESPN will make cuts to on-air talent, with a likely mix of layoffs and salary reductions.
Shares of Disney were little changed at $99.22 at 11:12 a.m. in New York. They were up 14% this year through the close on April 21.
Hourly workers at Disney’s theme parks won’t be affected, the company said. The third round should come before the beginning of summer.
Disney is racing to curb losses on its flagship Disney+ streaming service, which debuted in 2019. Wall Street’s attention since then has shifted from subscriber growth to the staggering cost of operating online video platforms.
Iger returned to lead Disney in November after the company disclosed a $1.47 billion quarterly loss from streaming, which includes ESPN+ and its controlling stake in Hulu.
–With assistance from Gerry Smith.
(Updates with ESPN details in fifth paragraph.)
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