The Walt Disney Company will soon be well on its way to cutting 7,000 jobs, as layoffs have begun this week of 4,000 staff, reports online entertainment news portal Deadline..Affected workers will all be known by Thursday, with the final round of cuts of approximately 3,000 workers expected to take place before the middle of June..In a memo circulated to staff, Disney Entertainment co-chairmen Alan Bergman and Dana Walden, wrote, “These are hard decisions and not ones we take lightly but every decision has been made with considerable thought, and we are doing everything we can to make sure this process is conducted with respect and compassion.”.This is the second wave of cuts at Disney, with the first wave coming on March 27, and has been anticipated for weeks, referred to by workers as ‘the big one’ or a ‘bloodbath,’ Deadline has reported. .The cuts come after the company said in February it expects to realize $5.5 billion in cost savings from the layoff, as well as other austerity measures. .Two other company divisions, ESPN and Parks, Experiences and Products, will experience staff reductions in addition to Entertainment, says Deadline, adding, “No frontline operational workers at the company’s theme parks are expected to lose their jobs.”.CEO Bob Iger who returned to his old job last November, outlined the downsizing plans shortly after returning, targetting cuts in the centralized distribution organization created by his predecessor, Bob Chapek. .“Like its peers in the media business, Disney is contending with secular decline in its lucrative pay-TV business at the same time it is trying to continue funding its streaming efforts despite their still-murky economics,” reports Deadline..“In the most recent quarter, the company booked a $1 billion loss in streaming, despite record-setting revenue of $5.3 billion.”.The loss was less than the $1.5 billion decline in the previous quarter, and even its flagship service, Disney+, lost 2.4 million subscribers to end the quarter at 161.8 million, after several previous quarters of growth..In the staff memo, Bergman and Walden also wrote:.“Restructuring in various businesses will continue for the next couple of months, and we do anticipate there will be further impacts before the summer, as previously shared. Each team is in a different place in this process, and your leaders will be sharing more context for your group soon.”.“This is a time of transition for Disney, and these changes affect everyone, whether or not your role is impacted. We are committed to supporting you through this period and encourage you to reach out to your leader or HR partner with any questions or for guidance, as needed.”.“While we are confident that these efforts will better position us for the future, we realize this all takes a toll. We want to acknowledge the impact of this moment and simply reiterate our appreciation for all of you and the passion and dedication you’ve brought to the work we do every day. And for those who will be leaving the company, please know that your contributions are valued and appreciated — you have all played a meaningful role in making Disney what it is today.”
