Disney is reportedly commencing the third phase of job reductions, as stated by a CNN report. These layoffs could potentially affect an estimated 2,500 jobs, with employees expected to receive notifications this week. This round of layoffs is predicted to be the final substantial one, as previously announced by Bob Iger, Disney’s returned CEO. The specific divisions to be impacted by this new wave of job cuts remain uncertain.
In February, the CEO declared that the company planned to cut around 7,000 positions from its global workforce, with the job cuts occurring in three phases.
The first round of job reductions began in March, where Disney removed approximately 7,000 positions from its international workforce, aiming to save $5.5 billion. In the second round, the company, under Bob Iger’s leadership, dismissed 4,000 employees. The company disclosed that these workforce reductions constituted 30% of the overall figure, with another 50% resulting from cuts in marketing operations and 20% from reduced spending on technology, procurement, and other costs.
The job cuts happening this week are expected to push the total number of positions eliminated to over 6,500, nearing the 7,000 total announced by Iger.
Iger stated in a February earnings call, following Disney’s latest quarterly earnings report, “I do not make this decision lightly”. He further added, “We are going to take a really hard look at the costs for everything that we produce, both in television and film. Because things in a very competitive world have just simply become more expensive.”
Referring to Disney+ as a competitor to Netflix and Amazon Prime, he mentioned during the call, “We were in a global arms race for subscribers. I think we might have gotten a bit too aggressive in terms of our promotion; and we are going to review that.”