An internal memo obtained by CNBC details The Walt Disney Company’s plans to begin laying off employees this week. A total of 7,000 job cuts are expected throughout the company.
“This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions,” Iger wrote in the memo. “Leaders will be communicating the news directly to the first group of impacted employees over the next four days. 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.”
The job cuts will impact the media divisions — including ESPN — as well as the company’s parks and resorts.
A cost-cutting endeavor of $5.5 billion by the company is the driving force behind the decision.
The move coincides with other reorganization efforts for The Walt Disney Company since the return of CEO Bob Iger. Earlier this year, Iger announced that the company would be split into three separate divisions, with ESPN becoming an independent entity within the company. Entertainment & Parks and Experiences & Products also splintered off into independent divisions.
So far in 2023, Disney’s stock price has risen by 8%. According to CNBC, the price fell by 44% in 2022.
