Disney will begin a long-expected series of layoffs this week — signaling that a “larger” round of cuts is planned for April because the Mouse House looks to slash 7,000 jobs.
CEO Bob Iger detailed plans for the bloodbath in an ominous memo to staffers Monday. The primary set of Disney employees will receive their pink slips by the top of this week.
The “second, larger round of notifications” will occur in April and consist of “several thousand more staff reductions.”
A 3rd round of cuts is predicted to occur “before the start of the summer to achieve our 7,000-job goal,” Iger added.
“For our employees who aren’t impacted, I would like to acknowledge that there’ll little doubt be challenges ahead as we proceed constructing the structures and functions that may enable us to achieve success moving forward,” Iger said within the memo, which was obtained by the Hollywood Reporter.
Iger has led a rapid restructuring at Disney since returning as the corporate’s CEO last November. In February, the longtime executive first announced the 7,000 layoffs would happen as a part of a $5.5 billion cost-cutting plan.
Bob Iger warned of “challenges ahead” for Disney.REUTERS
In his memo, Iger said the layoffs were “essential cost-saving measures obligatory for making a simpler, coordinated and streamlined approach to our business.”
“In tough moments, we should do what’s required to make sure Disney can proceed delivering exceptional entertainment to audiences and guests all over the world — now, and long into the longer term,” Iger added.
Disney has greater than 200,000 employees across its various business interests.
Bob Iger returned as Disney CEO last November.REUTERS
Of the $5.5 billion Disney is aiming to avoid wasting, some $2.5 billion would come from operational cost reductions, while $3 billion is linked to savings on spending cuts for non-sports content.
Disney launched into the budget-tightening stint after facing pressure from activist investors who accused the corporate of overspending on its streaming business.
Bob Iger said the layoffs will occur in three waves starting this week.REUTERS
Iger has also reorganized Disney’s sprawling business into three segments — one focused on film, television and streaming assets, one on the sports media giant ESPN and one on the corporate’s theme parks and experiences.
The Disney CEO has also cracked down on the corporate’s corporate workforce, implementing a requirement that staffers return to the office at the very least 4 days per week starting on March 1.
