Disney Plans to Cut Thousands of Jobs in Entertainment Division and Beyond to Save $5.5 Billion in Annual Costs
The Walt Disney Company is reportedly planning to eliminate thousands of jobs next week, including about 15% of its staff in the entertainment division, according to people familiar with the matter. The layoffs are part of the company’s overall strategy to save $5.5 billion in annual costs, which includes a reduction of $3 billion in content spending. The cuts will span TV, film, theme parks, and corporate positions, and affect every region where Disney operates. The affected workers will reportedly be notified as early as April 24.
The entertainment giant had previously announced 7,000 job cuts in February, and is now set for another round of layoffs as it targets cost-savings across the company. The cuts will impact several areas within the entertainment division such as TV, film, theme parks, and corporate teams. As part of the restructuring, CEO Bob Iger moved to restore authority to creative executives, elevating key lieutenants including Alan Bergman and Dana Walden, the co-chairmen of Disney Entertainment.
The layoffs come amid a challenging economic environment and a shift in Wall Street’s attention from subscriber growth in streaming to the high cost of operating online video platforms. All the major media companies such as NBCUniversal of Comcast Corp. and Warner Bros. Discovery Inc., and Paramount Global, is trimming its headcount.
It is expected that the cuts will be a tough decision for employees who make big numbers, as they might be asked to stay but with a 50% pay cut. Employees will have to decide if they want to continue working and make less or leave and receive their full contract.
Disney is set to report its fiscal second-quarter earnings results on May 10.
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