Disney, one of the largest entertainment conglomerates in the world, is set to lay off 4000 employees this week, as part of its previously announced plan to cut 7000 roles from across the company. The layoffs, which began in March and are expected to continue through the beginning of summer, will impact most of the company’s departments, including Disney Entertainment, ESPN, and corporate Disney Parks, Experiences, and Products roles in New York and Connecticut. While the public-facing roles at the Disney Parks will not be affected, the salaried roles in other departments will be eliminated.
The Layoff Plan
The layoffs were announced by Bob Iger, the former CEO of The Walt Disney Co., in February of this year. Iger, who returned to the role of CEO in the wake of the ouster of his successor, Bob Chapek, found it necessary to restructure the company into just three segments – Disney Entertainment, ESPN, and Parks, Experiences, and Products – to become a leaner and more efficient operation. The move involved a targeted hiring freeze, a review of content and marketing spends, and new limits on employee travel.
The Layoff Impact
While the layoffs are expected to impact salaried roles, the hourly, public-facing roles, or “cast members,” at the Disney Parks will not be affected, as the Parks remain the biggest revenue stream for the company. The impacted employees will receive notifications by Thursday, and the layoffs are expected to continue through the beginning of summer.
A note to Disney Entertainment employees from executives Alan Bergman and Dana Walden reads that restructuring in various businesses will continue for the next couple of months, and there will likely be further impacts before the summer, as previously shared. The company is committed to conducting the process with respect and compassion and supporting employees through this period of transition.
The decision to lay off 4000 employees from Disney is a tough one, and the company is doing everything it can to conduct the process with respect and compassion. The move is part of a larger effort to restructure the company and become more efficient. While the impacted employees will face hardship, the company is committed to supporting them through this period of transition.