Disney is proceeding with a substantial workforce reduction this week, cutting several thousand jobs across various divisions in the largest phase of its previously revealed plan to eliminate 7,000 positions.
This significant round of job eliminations will affect ESPN, Disney's entertainment division, Disney Parks, and the Experiences and Product division. This is part of a larger effort, announced in February by CEO Bob Iger, to save $5.5 billion in expenses. During the pandemic, Disney halted dividend payments, but Iger declared in February that he anticipates their return.
The job cuts are scheduled to occur from Monday to Thursday this week, impacting employees throughout the country. Following an initial wave last month, this round brings the total number of lost jobs within the company to 4,000. However, these reductions will not impact hourly frontline workers at Disney's theme parks and resorts.
Disney plans to implement a third and final wave of job cuts before the start of summer to reach the target of 7,000 positions eliminated. As of October 1, Disney employed about 220,000 workers, with roughly 166,000 based in the United States. A reduction of 7,000 jobs represents approximately 3% of its global workforce.
In a memo to staff last month, Iger expressed the difficulty of this decision, stating, "The challenging reality of many colleagues and friends departing Disney is not something we take lightly." He emphasized the need to make tough choices to ensure that Disney can continue providing outstanding entertainment to audiences and guests worldwide, both now and in the future.
The decision to implement job cuts follows Iger's return to Disney in November, after the company's board removed Bob Chapek from his leadership position.
Q&A Section:
Q: How many jobs is Disney planning to cut?
A: Disney plans to eliminate 7,000 positions as part of its workforce reduction plan.
Q: Which divisions will be affected by Disney's job cuts?
A: The job cuts will impact ESPN, Disney's entertainment division, Disney Parks, and the Experiences and Product division.
