Walt Disney Co. is commencing its second round of layoffs today in an effort to reach a total of 7,000 job eliminations by the week's end. The massive workforce reduction will impact divisions such as Disney Entertainment, ESPN and Disney Parks, Experiences and Products (hourly frontline operations roles at Parks and Resorts). According to the company, a third and final wave of cuts is expected ahead of summer.
Disney CFO Christine McCarthy shared that "the company is aiming for an annualized reduction of $3 billion in non-sports content costs", which will be realized over several years. This cost-cutting initiative comes as media companies are scaling back on content spending while working towards making their streaming businesses profitable.
The first round of layoffs affected ABC News along with the metaverse unit focused on next-generation storytelling – a project spearheaded by former CEO Bob Chapek. By Thursday this week, approximately 4,000 jobs will have been eliminated out of the targeted 7,000 staffing cuts promised to investors earlier this year.
"The third round before summer will complete our objectives," said Barbara Levinson-Jenkins, Senior Vice President at Walt Disney Human Resources Division. Affected employees can expect notifications throughout this week regarding specific departments and positions impacted by these layoffs.
Jobs being cut span across various locations from Burbank in California to New York and Connecticut; however hourly workers at parks and resorts are not expected to be affected by these measures.
Industry analyst Laura Martin commented that "Disney's aggressive move towards trimming expenses aligns with other major media players who have been forced to adapt amid industry shifts." She added: "Although it's unfortunate that many talented individuals face unemployment during these challenging times globally."
It remains uncertain how significantly the restructuring plan could affect future projects or day-to-day operations within various divisions under Walt Disney Co. However, investors and industry experts will keep a close eye on the company’s progress towards achieving its cost-cutting goals while ensuring long-term stability and success in an increasingly competitive market space.