Disney will sack thousands of workers this week in a bid to save $5.5 billion in costs. The company will begin the second wave of layoffs on Monday as it works towards eliminating 7,000 jobs, which includes 15% of its entertainment sector.
Disney has already begun the process to layoff off "several thousand" jobs and many will find out by Thursday whether they'll be staying or going. Disney has around 220,000 employees globally, with 166,000 based in the US and about 54,000 internationally.
The layoffs are expected to affect Disney Entertainment, ESPN and Disney Parks, Experiences and Products, bringing the latest round of reductions to a total of 4,000 jobs, reports CBS News.
Disney Parks employs the majority of workers in the US, around 100,000 people in 2020, according to the most recent statistics. It is not yet known what proportion of the cuts will be coming from which section.
There are 12 Disney Parks located at six different resorts, with Disneyland and Walt Disney World based in the US but Disney have said previously that it doesn't expect layoffs to affect its hourly workers in their parks and resorts.
The cuts will have an considerable impact on Disney Entertainment, which houses the Disney+ streaming service but it is not yet known whether TV programmes will be pulled. ESPN, which Disney took ownership of in 1995, is one of the small divisions of the company with only around 1,250 employees, according to February statistics.
In a staff memo, seen by Deadline, Disney Entertainment Co-Chairmen 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 conducted with respect and compassion.
"The senior leadership teams have been working diligently to define our future organization, and our biggest priority has been getting this right, rather than getting it done fast. We recognise that it has been a period of uncertainty and thank you all for your understanding and patience."
The second round of jobs cuts are set to be completed by Thursday, with the third wave expected to start before the beginning of the summer. Disney, worth around 182 billion, began its layoff plan in February during a restructure of the business.
CEO Bog Iger began Disney's downsizing plans earlier this year, and said cost reductions would include cutting $3 billion in content expenses, excluding sports, and the remaining $2.5 billion from non-content cuts.
Bergman and Walden went on to say in their staff memo that it was a time of "transition for Disney" and that the changes affect everyone, whether or not their role is impacted or not.
"This is a time of transition for Disney, and these changes affect everyone, whether or not your role is impacted," read the memo.
"While we are confident that these efforts will better position us for the future, we realize this all takes a toll. We want to acknowledge the impact of this moment and simply reiterate our appreciation for all of you and the passion and dedication you’ve brought to the work we do every day."
Disney's sackings come as several media companies pull back on their entertainment and content spending, to try and create a more streamlined approach to their businesses. This follows Netflix's report of subscription losses in early 2022.
