Disney CEO Bob Iger confirmed Monday that the entertainment giant will begin a massive round of layoffs this week which will ultimately total 7,000 positions lost.
The company announced in February that it will slash $5.5 billion in operating expenses, which included $3 billion in content spending. Disney explained the move as necessary to cut costs and revitalize the company’s failing financial health.
Iger’s Monday staff memo, as reported by CNBC, said “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.”
He added the sweeping measure will result in “a more effective, coordinated, and streamlined approach” for Disney. He said the struggling company will start notifying employees who are losing their jobs this week.
— New York Post (@nypost) March 27, 2023
A second and more significant round of layoffs will commence next month “with several thousand more staff reductions.” Iger said the process will be completed before the start of summer.
The sweeping changes will be absorbed by multiple major divisions, including Disney Entertainment, Disney Parks, Experiences, and Products, as well as corporate. Cable sports network ESPN will reportedly not be affected by the initial round of cuts but will be involved in later actions.
Iger said that many who will be affected “bring a lifelong passion for Disney” to their jobs.
A source confirmed that one of the first targeted areas will be television production and acquisition departments. It is reported that several senior executive positions are on the chopping block.
Some believe that “guest-facing” services at Walt Disney World Resorts in Orlando will not be affected. The industry already grapples with labor shortages for these positions, and union leaders believe it is not wise to lay off workers who come face-to-face with spending customers.
Disney, of course, set its own course toward this day of reckoning. The company pursued a path that upset millions of parents and several prominent political leaders. Now many are reassessing the role the traditional family entertainment company plays in their families.
Further, the company insists on destroying its relationship with young families by inserting woke indoctrination and messaging into what should be innocent fare. It is no wonder that the company is struggling, and only by abandoning this woke path will it recover what was lost.