A new report claims executives at The Walt Disney Company are being ordered to identify thousands of potential layoff candidates at the company on the order of CEO Bob Iger.
According to Business Insider, managers at the company must identify candidates for layoffs by April, per a Disney source. Layoffs will impact about 4,000 employees, with the rest of the cuts coming from open roles. Additionally, targets have been given for reducing spending and headcount to each of these departments. Iger is reportedly on “a push for profitability” as his return to the company continues.
Much effort has is being undertaken to eliminate redundancies and even executives where they can. These executives have been directed to prepare budget cuts and lists of employees to be laid off, with sources telling Business Insider that these will begin in April. However, it’s unclear whether the layoffs will occur in waves or all at once, as they did during the COVID-19 furloughs.
Disney declined to comment to Business Insider on this story.
CEO Bob Iger announced his plans to collapse the centralized content and distribution unit Disney Media & Entertainment Distribution, championed by former CEO Bob Chapek, on his first day back at Disney in November. He also confirmed a hiring freeze announced under Chapek would still go forward.
He then announced plans to eliminate 7,000 jobs during the February earnings call. CFO Christine McCarthy told investors on the same earnings call that the company has targeted cost savings of $5.5 billion. Some of that will come from trimming money spent on TV and movies, and the rest will come from marketing and other non-content budgets.
Back in February, Iger also announced the restructuring of Disney into three wings — Entertainment, ESPN, and Disney Parks, Experiences, and Products. Alan Bergman and Dana Walden co-chair Entertainment, Jimmy Pitaro heads ESPN, and Josh D’Amaro continues to watch over DPEP.
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