Disney to reduce workforce by 7,000 in a cost-cutting move
Business Connect Magazine
Business Connect- A magazine of new era for the business community! We Aspire to Inspire! Connecting the Business world!
Disney to reduce workforce by 7,000 in a cost-cutting move
Written by?Sanjay Kumar
On Monday (March 27), The Walt Disney Company began implementing its previously announced plan to cut 7,000 jobs in an effort to improve cost management and streamline its business operations.
According to a letter from CEO Bob Iger to employees, which was reported by Reuters, major divisions of the company such as Disney?Entertainment, Disney Parks, Experiences and Products, and corporate will be affected. While ESPN is not affected in this round of cuts, it is expected to be impacted in future rounds.
The Walt Disney Company
Mass media company
Iger stated that the company will start notifying the initial group of employees who will be impacted by the upcoming workforce reductions within the next four days. Another, more extensive round of job cuts is scheduled for April, which will involve several thousand more staff reductions.
The final phase of layoffs is expected to take place before the start of summer, according to the letter.
“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,” Iger said in a statement.
“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,” he added.
领英推荐
In February, the entertainment conglomerate based in Burbank declared its plan to cut 7,000 jobs as part of its efforts to reduce costs and make its struggling streaming business profitable. The company stated that it aims to save $5.5 billion through this move.
“The difficult reality of many colleagues and friends leaving Disney is not something we take lightly,” Iger wrote, noting that many “bring a lifelong passion for Disney” to their work.
Disney has been tight-lipped about the specifics of the job cuts, but insiders anticipate the cuts will happen before the company’s annual shareholder meeting, scheduled for April 3.
RelatedPosts
Must Read:-