Walt Disney Devastates Employees with Second Layoff
Walt Disney Co. announced on Monday that it will be starting a second round of job cuts in efforts to eliminate 7,000 positions. The layoffs will be implemented across the group, including Disney Entertainment, ESPN and Disney Parks, Experiences, and Products.
Previous Layoff Plan
The Walt Disney Company had announced its initial layoff plan in February this year, where several thousand jobs were cut, bringing the total number of jobs culled to 4,000. The job cuts are a component of Disney’s strategy to reduce annual expenditures by $5.5 billion.
Impact of Disney’s Flagship Streaming Service
The company is racing to curb losses on its flagship Disney streaming service, which debuted in 2019. The streaming service has faced intense competition from Netflix and other online video providers.
Senior Leadership Teams Working Diligently
The Walt Disney Company is expected to reduce “several thousand” jobs by Thursday, as per a Reuters report that cites sources within the company. The senior leadership teams have been working diligently to define the company’s future organization. The company’s biggest priority has been getting this right rather than getting it done fast, said Disney Entertainment co-chairmen Alan Bergman and Dana Walden.
Period of Uncertainty
Disney officials acknowledged that it has been a period of uncertainty and thanked employees for their understanding and patience. On 27 March, the company started notifying its affected employees, and a second, larger round of job cuts would follow in April.
The Walt Disney Company’s decision to implement a second round of job cuts is a result of the losses that its flagship Disney streaming service has faced. The job cuts will be implemented across various sectors of the company, and the senior leadership teams are working diligently to define the company’s future organization.
