Walt Disney Company on Monday March 27, began 7,000 layoffs announced earlier this year, as CEO Bob Iger works to save the company some $5.5 billion.
Several major divisions of the company; Disney Entertainment, Disney Parks, Experiences and Products, and the company’s corporate arm will be impacted.
In a note to colleagues seen by CNN, Iger said the layoffs will come in three waves. The first round will begin this week, and managers will begin notifying affected employees as soon as possible. According to Iger, a second, larger round of layoffs will take place in April, affecting thousands of employees. A third round of layoffs will then occur “before the beginning of the summer” to accomplish the company’s projected objective of removing 7,000 positions.
“The difficult reality of many colleagues and friends leaving Disney is not something we take lightly,” Iger said in the memo. “In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future.”
As of October 1, Disney (DIS) employed approximately 220,000 people, with approximately 166,000 of them based in the United States. A cut of 7,000 jobs represents about 3% of its global workforce.
The layoffs follow Iger’s return to Disney in November after the company’s board fired Bob Chapek as its leader.
California-based global entertainment conglomerate announced in February that it would eliminate 7,000 jobs as part of an effort to save $US5.5 billion ($8.2 billion) in costs and make its money-losing streaming business, Disney+, profitable.
“The difficult reality of many colleagues and friends leaving Disney is not something we take lightly,” Mr Iger wrote, noting that many “bring a lifelong passion for Disney” to their work.