Walt Disney Co (NYSE: DIS) inches down in early session on Tuesday as the company declared that it would start a round of layoffs this week. In an effort to lower corporate expenses and increase free cash flow, this will be done. A new report shows that the first of three cuts will result in about 7,000 job losses. Disney and ESPN’s media and distribution, parks and resorts divisions will be affected by all three layoffs.
Disney said the job cuts would help the company cut costs by $5.5 billion, including $3 billion in content spending. According to a memo sent to CNBC by Disney CEO Bob Iger, executives will be asked to relay news directly to the first group of affected employees over the next four days.
The second wave of layoffs will be much larger. Employees will be notified in April of several thousand additional layoffs. The third and final batch of announcements is expected to take place before the start of summer. Disney hopes these measures will help it stop losing money by 2024.
In a letter to Disney employees, Iger wrote, “We have made the difficult decision to cut approximately 7,000 of our overall employees as part of a strategic reorganization of the company, including measures to The significant cost-cutting measures needed to create a more streamlined, efficient and streamlined approach to our business, he added: “For our unaffected employees , I’d like to acknowledge that there are bound to be challenges as we continue to build the structures and functions that will allow us to succeed.” to advance.”
Other technology and media companies have also downsized significantly since late last year. In addition to layoffs at media companies like Warner Bros. Discovery, the layoffs affected big tech companies like Meta, Amazon and Google. Citing an unnamed source, Reuters reports that staff at Disney, as well as the Disney Entertainment and Disney Parks, Experiences and Products segments, will be cut this week.
Iger wrote that layoffs were “not something we take lightly,” then expressed “sincere thanks and gratitude to each and every employee who has left for your many contributions and dedication to the company.” this dear”.