On Monday (Mar 27), Walt Disney started executing the previously announced 7,000 layoffs. The company aims to control costs and streamline its business. In a letter to employees, Chief Executive Bob Iger announced that several major divisions of the company, including Disney Entertainment, Disney Parks, Experiences and Products, and corporate, would be affected by the layoffs. The entertainment industry has undergone a retrenchment since it initially embraced video streaming, when established media companies lost billions as they launched competitors to Netflix Inc.
Media companies began reining in spending when Netflix posted its first loss of subscribers in a decade in early 2022, and Wall Street began prioritizing profitability over subscriber growth. Iger announced that Disney would start notifying the first group of employees affected by the workforce reductions over the next four days. A second, larger round of job cuts will occur in April, resulting in “several thousand more staff reductions”. The final round will begin before the summer, according to the letter.
One of the first areas targeted for cuts was television production and acquisition departments, which resulted in the departure of senior executives, a source confirmed.
The company had closely guarded the details of the layoffs, though insiders anticipated reductions would happen before Disney’s annual shareholder meeting on Apr 3. Anxiety has been building within Disney as rumors swirled about areas of possible cuts. “It’s a dark, black box,” said one Disney executive who spoke to reporters last week.
Disney Parks
In February, Josh D’Amaro, chairman of Disney Parks, Experiences and Products, sent a memo to theme parks employees warning that the profitable division would experience cuts. Two unions representing cast members at Walt Disney World Resorts in Orlando, Florida, officials have stated that the layoffs would not impact “guest-facing” services.
“I don’t see where, when there are labor shortages in front-facing guest roles, it would be a good decision to lay off workers where the money train starts for the Walt Disney Co,” said Paul Cox, president of the International Alliance of Theatrical Stage Employees Local 631
