The Walt Disney Company may create magic for its fans, but its employees are probably having less time than magic right now. The media and entertainment conglomerate begins its second and largest round of three waves of layoffs planned for this week.
By the end of the second package of cuts, Disney will have cut about 4,000 workers since late March. In total, the company plans to The elimination of about 7,000 jobs (3.2% of its total workforce) across sectors by summer, as it announced for the first time during this period investor call in feb.
At the end of last month, Disney Shootings have begun for her metaverse division—cuts the entire team dedicated to “the next generation of storytelling and consumer experiences.” company also made Cuts in the streaming sector in its Beijing office. About 400 Disney employees were laid off.
Now, that number is expected to jump tenfold with the focus on layoffs at Disney Entertainment, the company’s media production segment which includes broadcast services Such as Disney+, Hulu, ESPN, and theme parks. People will be affected by the cuts across the country, though Disney does not expect hourly workers or park and resort employees to be affected, according to reports from CNBC And diverse.
Disney CEO Bob Iger formulated the planned layoffs as part of an overall cost-cutting strategy. The company is seeking to eliminate $3 billion in content-related expenses and at least $2.5 billion in non-content-related cuts, Iger explained during the first-quarter earnings call. Disney reported some rather bleak February results. The company lost about 2.4 million Disney+ subscribers worldwide – its first-ever drop in customer numbers. The streaming service also saw revenue drop 2% in North America – though Prices have increased relatively recently.
“I don’t take this decision lightly,” Iger told investors during the call. “I have tremendous respect and appreciation for the talent and dedication of our people around the world, and I am aware of the personal impact of these changes.”
Disney isn’t alone in having streaming difficulties. Netflix I faced a long slump At the end of 2022. and multiple companies such as HBO Max/Discovery+ Consider or enact mergers amidst the crowded and competitive broadcasting industry. NBC Peacock lost nearly $1 billion In one quarter of 2022.
However, it remains to be seen if downsizing Disney is the answer to the problem. Although layoffs often please investors in the short term, the strategy may not do well for the company The long-term.
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