Walt Disney to Layoff 7,000 Employees
On Monday, The Walt Disney Company announced that it will start layoffs in stages this week. Approximately 7,000 employees, which represents about 3% of its workforce, will be affected. The move is part of a plan to cut costs of $5.5 billion that Disney announced in February.
Bob Iger, the company’s top executive, stated that this week he will begin to inform the affected employees. In April, a second group of workers will be notified, and the final group will be informed at the beginning of the summer.
“We’re trying to create a more efficient, coordinated, and streamlined approach to our business,” Iger wrote in a message to his employees.
The company first announced the layoffs in February, during its quarterly results announcement. Disney+ reported a loss of 2.4 million subscribers to its streaming service.
This move comes at a difficult time for the entertainment industry due to the coronavirus pandemic, which has forced many businesses to close or reduce capacity. Disney parks and resorts worldwide were also affected, leading to significant job losses.
Despite the pandemic’s impact on the industry, Disney+ has been a bright spot for the company, with more than 73 million subscribers worldwide as of September. However, it is clear that the pandemic has affected the company’s bottom line, leading to the cost-cutting measures.