In a move that had been anticipated since February, the Walt Disney Company has announced that it will lay off 4,000 employees this week. This is part of a broader plan to cut 7,000 roles across the company by the start of summer. The layoffs will affect roles in Disney Entertainment, ESPN, and corporate jobs in Parks, Products, and Experiences.
The affected employees are expected to be notified by Thursday, with a smaller round of layoffs having begun in March. The company will reach its target reduction of 7,000 by the beginning of summer. However, hourly, public-facing roles (or “cast members”) at the Disney Parks will not be affected, as the Parks remain overwhelmingly the biggest revenue stream for the company.
The move follows the reorganization of the company into three segments: Disney Entertainment, ESPN, and Parks, Experiences, and Products, led by former CEO Bob Iger. It had been known since February that this restructuring would lead to job losses, but it is still a shock for the employees affected.
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The entertainment industry is facing a challenging business landscape, which has led Disney to become a leaner, meaner company. Under the previous CEO, Bob Chapek, a targeted hiring freeze was instituted, as well as a review of content and marketing spends, and new limits on employee travel.
Executives Alan Bergman and Dana Walden have said in a note to Disney Entertainment employees that restructuring in various businesses will continue for the next couple of months, and further impacts are expected before the summer. The executives acknowledged that these are hard decisions and not ones taken lightly. They are doing everything they can to make sure this process is conducted with respect and compassion.
While the company is confident that these efforts will better position them for the future, they recognize that this all takes a toll. They want to acknowledge the impact of this moment and simply reiterate their appreciation for all of the affected employees and the passion and dedication they’ve brought to the work they do every day.