As reported by Deadline, the third planned wave of layoffs at The Walt Disney Company has begun today, and will impact roughly 2,500 people, after initially only estimated to affect 700. but not any frontline cast members in the parks.
It is estimated to effect around 700 employees across the board at the company, we’re told. While Parks and Resorts remain mainly untouched, the pink slipping this week isn’t aimed at any particular division. We hear television, which was hit hard in the second round, is largely spared this time with a small number of layoffs, we hear.
While 700 was originally reported, that number has ballooned. After the gargantuan second wave that involved cuts of around 4,000 of the total 7,000 layoffs, this wave is still smaller, but far larger than originally anticipated. This has included the removal of dozens of titles from Hulu and Disney+ in a cost-cutting measure. CEO Bob Iger intends to meet $5.5 billion in reductions when the bulk of these actions are complete. Overall, entertainment saw a 15% reduction, the dissolution of Disney TV Studios marketing, with Freeform & ABC executive layoffs.
The first round of layoffs began in late March. Senior Vice President of Production for Hulu, Mark Levenstein, and Senior VP of Production Management & Operations For Freeform, Jayne Bieber, were among the first executives to be let go. Also laid off was VP of Corporate Communications for The Walt Disney Company, Jeffrey R. Epstein, and Marvel Entertainment Chairman, Ike Perlmutter. Disney’s “Metaverse” team was also terminated.
Reasons for the Cuts
The company’s restructuring comes after previous CEO Bob Chapek was fired last November. Though many changes were made within the company immediately after his exit, the stock price continued to be an issue. The majority of job cuts were delayed until after the April 3 shareholders meeting.
After Disney’s second quarter report on May 10, the stock price fell by almost 9%, and while its been relatively stable since then, it has remained in the range it dropped into.
Iger describes these decisions as a “significant transformation to realign Disney for sustained growth and success.” Ultimately, its stated aim is to return creativity and authority to leaders, as well as streamline operations.
On the whole, the company reported a total of $21.8 billion in revenue last quarter. Parks, Experiences and Products accounts for over a third of that total, making $7.78 billion.
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