As part of a $5.5 billion cost-cutting effort, Disney has begun executing the first round of employment layoffs, which are estimated to affect 7,000 jobs. CEO Bob Iger sent a memo to staff on March 27.
During the next four days, the first group of affected employees received notifications. Thousands of workers will be affected by a second round of layoffs planned for April, and the remaining staff will be informed before summer.
According to a person familiar with the situation, several important divisions of the corporation, including Disney Entertainment, Disney Parks, Experiences and Products, and corporate, would be impacted. ESPN was not affected by the round of cuts this week, but it is predicted that it will be in subsequent rounds, according to Reuters.
The layoffs scheduled in February have started, CEO Bob Iger informed Disney employees in an email on March 27.
The memo writes, “This week, we begin notifying employees whose positions are impacted by the company’s workforce reduction. Leaders will be communicating the news directly to the first group of impacted employees over the next four days.”
In April, a greater round of layoffs is planned, with 7,000 staff members to be let go before the start of the summer, according to the letter.
Iger admitted that as the business continues to develop the structures and operations that will allow it to succeed in the future, there will be challenges ahead for people who are not touched by the layoffs.
