Disney (DIS) has started its initiative of layoffs that were proposed in February. On Monday, Disney CEO Bob Iger announced that Disney will begin laying off staff from this week. This will be the first among three rounds of layoffs. The entertainment giant had announced the axing of 7,000 jobs across its global workforce last month and this initiative is expected to be completed before summer begins. The multi-billion cost cutting exercise aims to streamline operations in times of industrial turmoil.
When Bob Iger returned to head Disney, in November after Bob Chapek was laid off by the board, one of his first actions was to trim down the workforce.
Multiple outlets obtained a memo that was sent to staff. In the memo, Bob Iger said that there would be three rounds of layoffs. Managers will inform the affected employees starting this week in the next four days about the first round of layoffs.
The second round of layoffs will be a larger round. Several thousands of employees are expected to lose their jobs in what can also be described as April layoffs as they will take place next month.
The third round of layoffs will take place before summer begins and is expected to bring the total layoffs to the proposed 7,000 ones that were announced in February.
As of October 1, Disney had 220,000 workers in its global workforce. Of these, roughly 166,000 are employed in the United States of America. Laying off 7,000 employees translates to a three percent decrease in its global workforce.
According to a report in Reuters ESPN employees will not be touched by layoffs in this round but could see job cuts in the next two rounds. The first wave will include job cuts in the following divisions
Disney Entertainment
Disney Parks, Experiences and Products and
Corporate jobs.
Disney is laying off 7,000 staff in order to save $5.5 billion and to make its streaming business, which has been losing money, profitable. Details of the layoffs are closely guarded but insiders say that many layoffs would occur before April 3, as it is the date of Disney’s annual shareholders meeting.
Groupon Shares Attractive After 15 percent Drop Post Q4
