Disney to begin layoffs of 7,000 employees this week

Disney has announced that it will begin a series of layoffs this week. This will be an effort to reduce corporate spending and boost free cash flow. A new report suggests that the first of three rounds of cuts will result in about 7,000 job losses. Disney’s media and distribution division, parks and resorts and ESPN will be impacted by the three rounds of layoffs.

Disney claims that the job cuts will help the company cut $5.5 billion in costs, including $3 billion in content spend.

Timeline of Disney layoffs

According to a memo sent by Disney Chief Executive Bob Iger, obtained by CNBC, leaders will be asked to convey the news directly to the first group of impacted employees over the next four days.

The second round of layoffs will be much larger. The employees will be notified in the month of April with several thousand more staff reductions. The third and final round of notifications is expected before the beginning of the summer. Disney expects that these moves will help it stop losing money in 2024.

In the memo, to Disney employees, Iger wrote, “We have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more effective, coordinated, and streamlined approach to our business." He added, “For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward.”

Other tech and media companies have also shrunk their workforce substantially since late last year. Apart from layoffs at media companies like Warner Bros. Discovery, the layoffs have impacted big tech companies like Meta, Amazon, and Google.

Also read: Disney reconsiders making content for its rivals under Bob Iger