The entertainment giant Walt Disney has launched the staff cutting plan, which provides for 7,000 total layoffs in order to give relief to the group’s accounts, severely tested by the pandemic and the growing competition from streaming services.
The first wave of employees to be laid off will be notified by Disney’s senior management in the next four days, Chief Executive Officer Bob Iger explained in a memo sent to staff yesterday. A second and larger round of cuts will come in April with “several thousand more staff cuts,” followed by a final group to be laid off before the start of the summer. The layoffs, which will save $5.5 billion, affect all of the company’s businesses, including Disney General Entertainment and Disney Media and Entertainment Distribution, as well as corporate positions and jobs in theme parks and consumer products businesses .
“The difficult reality of many colleagues and friends leaving Disney is not something we take lightly,” Iger wrote. “For employees who will not be affected by the cuts, I want to remind you that there will undoubtedly be challenges ahead as we continue to build the structure and capabilities that will enable us to succeed moving forward,” the CEO added in the letter.