Starting April 24, Disney will lay off 4,000 employees and notifications will be delivered on April 27.
Those who work with the public in the parks are generally safe and won’t be retrenched. But employees in other departments will be given the sack.
These include those at Disney Entertainment, ESPN and those employed at the corporate offices in New York and Connecticut. Despite the excitement about Bob Igor returning as CEO (he is reputed to be the most successful CEO since Walt Disney himself) the cuts still have to be made because of the changing business landscape.
Cuts for Disney Employees
Sources say the biggest cuts would be in the Disney Entertainment segment most notably across ABC, Hulu, FX, Disney Channel, Freeform and the studio divisions.
The aim is to reach 7,000 cuts by the end of summer. Disney currently has a headcount of 220,000 employees as of Oct 2022.
With the layoffs of Disney employees, the company expects to get $5.5 billion in cost savings. It’s Chief Financial Officer Christine McCarthy said that Disney is aiming for an annualized reduction of $3 billion in non-sports content costs.
In a memo to its employees on April 24 Disney Entertainment co-chairman Alan Bergman and Dana Walden said, “These are hard decisions and not ones we take lightly – but every decision has been made with considerable thought, and we are doing everything we can to make sure this process is conduct with respect and compassion.
Period of Uncertainty
“The senior leadership teams have been working diligently to define our future organisation, and our biggest priority has been getting this right, rather than getting it done fast. We recognized that it has been a period of uncertainty and thank you all for your understanding and patience.
“This is a time of transition for Disney and these changes affect everyone, whether or not your role is impacted. We are committed to supporting you through this period and encourage you to reach out to your leader or HR partner with any questions or for guidance, as needed.”
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