Disney has announced its largest wave of job cuts as part of its plan to reduce its workforce by 7,000 employees. The media giant is laying off several thousand workers across various departments this week, including ESPN, Disney's entertainment division, Disney Parks, and its Experiences and Product division. This is the second wave of job cuts following an initial one last month. The company expects to make a final round of layoffs before the start of summer to reach the 7,000 total.
The job cuts are part of a larger workforce reduction plan announced in February by CEO Bob Iger, aiming to save $5.5 billion in costs. The company had suspended dividend payments during the pandemic, but Iger announced in February that he expects them to return. The layoffs this week are expected to impact employees from coast to coast.
However, the layoffs are not expected to affect hourly frontline employees at Disney's theme parks and resorts. Disney had about 220,000 workers as of October 1, with approximately 166,000 employed in the United States. A cut of 7,000 jobs represents about 3% of its global workforce.
The CEO of Disney, Bob Iger, had previously stated that the company must "do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world - now, and long into the future." The layoffs come after Iger's return to Disney in November, following the company's board firing Bob Chapek as its leader.
In conclusion, the latest wave of job cuts at Disney is a significant blow to the company's workforce. It remains to be seen how the layoffs will affect the company's financial performance and operations, but it is clear that Disney is taking steps to ensure its long-term viability in a challenging economic climate.