Disney to Eliminate the Employment of 7000 Employees: Report
According to a memorandum sent by Chief Executive Bob Iger, Disney is planning to cut 7000 jobs this summer. Still, whether these layoffs will be done in a single shot or in batches is unclear.
If sources are to be believed, the firm has taken this decision to boost free cash flow and reduce corporate spending. Disney has already reduced its USD 3 billion spending on content spend.
This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions.
Iger wrote in the memo that the firm has already started notifying their employees whose positions were impacted.
Over the next four days, Leaders will start interacting with the employees directly who have been impacted by this termination.
If sources are to be believed, Disney, during the month of April, is considering ending the employment of more than 4000 employees.
A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to commence the final round of notifications to reach our 7,000-job target.
Under the strategic reorganization, these layoffs will majorly impact three core business segments: experiences and products, parks and resorts, and ESPN, Disney’s media and distribution division.
This restructuring is the new part of our operations, said Iger. In a challenging economic environment, the firm is quite dedicated to taking essential steps to run its business efficiently, and with this step, the firm has earmarked to save USD 5.5 billion across all its divisions, said CFO Christine McCarthy.
Since returning as Chief Executive officer, Iger has restructured the corporation and admitted that he’d consider selling Hulu. As per reports, on April 3, Disney will be going to host its annual shareholder meeting.