Disney layoffs result in numerous high-ranking officials in streaming not making the cut: reports
Disney continues with layoffs as CEO focuses on savings and streaming
CFRA director, equity research Kenneth Leon and New Street Research managing partner Jonathan Chaplin debate whether Disney or rival Comcast is the better stock for investors to hold on 'The Claman Countdown.'
Disney began its second round of layoffs last week and several leaders in streaming were reportedly cut loose as CEO Bob Iger bets big on revamping Disney+ service while saving billions in operating costs.
Disney's second round of layoffs began on Monday and the company was expected to cut several thousand jobs through Thursday, sources familiar with the matter told Reuters.
In this Aug. 8, 2017, file photo, The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange. Disney is working on sequels for its "Toy Story," "Frozen" and "Zootopia" franchises as the company concentrates more on br … (AP Photo/Richard Drew, File / AP Images)
Iger, who returned to the entertainment machine in November, said during an earnings call in February that the company planned to trim its payroll by 7,000 employees under a new restructuring plan that included three rounds of layoffs.
DISNEY LAYING OFF THOUSANDS IN SECOND ROUND OF JOB CUTS
Iger said the company was targeting $5.5 billion of cost savings across the company with the restructuring, and under the strategic reorganization, there will be three core business segments including Disney Entertainment, ESPN and Disney Parks, Experiences and Products.
Disney+ is part of the Disney Entertainment division and is also a lucrative aspect of the company.
Attendees are reflected in Disney+ logo during the Walt Disney D23 Expo in Anaheim, California on September 9, 2022. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)
Bloomberg reported on April 27 that Jerrell Jimerson, Sean Curtis and Jaya Kolhatkar, who held leadership roles in product, technology and data divisions of Disney+ and Hulu were let go during the second round of layoffs.
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Also let go were members of marketing a business development teams for the streaming division.
Iger has called streaming a "No. 1 priority," and he is focused on improving the product that he introduced in 2019.
FILE - The Disney+ streaming log-in screen is displayed on a television, Monday, Aug. 9, 2021, in East Derry, N.H. Walt Disney reports quarterly financial results reports quarterly financial results Tuesday, Nov. 8, 2022. (AP Photo/Charles Krupa / AP Newsroom)
When the service launched in November 2019, it gained 10 million subscribers in a single day.
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The CEO walked away from his role in the company in 2020, and since then the service has grown its subscriber numbers substantially.
When Iger stepped away, Bob Chapek stepped in and spent billions on the production of original series to attract even more subscribers to the streaming platform.
One of the decisions Chapek made, Bloomberg reported, was giving his deputy Kareem Daniel and technology executive Michael Paull authority on how projects are released.
Iger returned in November 2022, and reversed many of Chapek’s decisions, leading to the exit of Paull and Jeremy Doig, the streaming chief technology officer.
The publication added that the majority of the team that created Disney+ is now gone, just four years after it launched.
Disney did not immediately respond to inquiries from Fox News Digital about the report and layoffs.
Last week’s round of layoffs was the second out of three, with the first occurring in March.
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Iger said in a memo to employees in March that the next two rounds would take place in April and "before the beginning of the summer."