Disney CEO Bob Iger has confirmed layoffs will begin this week within the company. Three rounds of cuts are expected to happen before summer of 2023.
Disney CEO Bob Iger has confirmed the first of three rounds of layoffs to start this week. According to Deadline, the company looks to reduce its workforce by roughly 7,000 employees.
The company’s restructuring comes after previous CEO Bob Chapek was fired last November. Though many changes have already been made within the company after his exit, stocks continue to plummet for the company.
Currently valued at only about half of its previous per-share value in summer 2021, investors and leaders in the company are attempting to make changes to remedy the company’s financial situation. Reducing staff is believed to be a way to possibly help their finances in the short term.
One other major change Iger implemented post-Chapek was abandoning a centralized distribution structure for content. Iger divided that corporate mass into three separate entities; however, now employees from all three of these new divisions: Parks, Experiences and Products; Entertainment; and ESPN are theorized to be included in the layoffs.
Disney is not out of options, though. Recent news on Disney and Comcast discussing Hulu’s future gives the media giant revenue options moving forward. One possibility is Disney acquires Hulu in full; another sees the streaming company unloaded completely. Bob Iger has recently reported a less than joyful disposition on streaming revenue in general. He has also stated that sports betting is an “inevitable” future for the business.
Bob Iger’s Memo to Employees
Bob Iger sent out a memo to employees regarding the cuts. His full memo is below.
Dear Fellow Employees,
As I shared with you in February, we have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more effective, coordinated and streamlined approach to our business. Over the past few months, senior leaders have been working closely with HR to assess their operational needs, and I want to give you an update on those efforts.
This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions. Leaders will be communicating the news directly to the first group of impacted employees over the next four days. 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 before the beginning of the summer to reach our 7,000-job target.
The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company.
For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this time.
In tough moments, we must always 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. Please know that our HR partners and leaders are committed to creating a supportive and smooth process every step of the way.
I want to thank each of you again for all your many achievements here at The Walt Disney Company.
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