Disney laying off thousands in second round of job cuts
Walt Disney Co. announced in February that it would trim its payroll by 7,000 jobs
Disney started a second round of layoffs on Monday as the company seeks to save billions in operating costs.
The company is expected to cut "several thousand" jobs through Thursday, sources familiar with the matter told Reuters.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 113.75 | +1.76 | +1.57% |
CEO Bob Iger, who returned to the entertainment giant in November, told analysts during an earnings call in February that the company was planning to trim its payroll by 7,000 employees under a new restructuring plan that included three rounds of layoffs.
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The first round of cuts occurred last month and impacted Disney’s corporate staff, as well as its Disney Entertainment and Disney Parks, Experiences and Products segments, Reuters reported.
However, Iger told employees in a memo last month that the next two rounds of cuts would take place in April and "before the beginning of the summer."
Walt Disney Studios in Burbank, California, US, on Thursday, Feb. 9, 2023. (Photographer: Eric Thayer/Bloomberg via Getty Images / Getty Images)
Officials told Reuters that 4,000 people have been affected so far, including the latest round of cuts that started Monday.
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Iger told analysts on the February earnings call that "this reorganization will result in a more cost-effective, coordinated, and streamlined approach to our operations" in the midst of the uncertain economy.
"We are committed to running our businesses more efficiently, especially in a challenging economic environment," Iger added.
Iger said the company was "targeting $5.5 billion of cost savings across the company" with the restructuring.
Bob Iger attends the Exclusive 100-Minute Sneak Peek of Peter Jackson's The Beatles: Get Back at El Capitan Theatre on Nov. 18, 2021, in Hollywood, California. ((Photo by Charley Gallay/Getty Images for Disney) / Getty Images)
Iger also revealed that under its strategic reorganization, there will be three core business segments including Disney Entertainment, ESPN and Disney Parks, Experiences, and Products.
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Disney joined a growing list of companies that have trimmed their workforce in recent months as economic uncertainty weighs on operations. The move follows Wall Street titans including Goldman Sachs and tech giants such as Amazon and Google parent Alphabet.
Representatives for Disney did not respond to FOX Business' request for comment.
FOX Business' Aislinn Murphy contributed to this report.