Disney layoffs will begin this week, CEO Bob Iger says in memo

Disney will begin layoffs this week, the first of three rounds in preference to the beginning of the summer that result in about 7,000 job cuts, according to a memo sent by Chief Executive Bob Iger.

The old are part of a broader effort to reduce corporate spending and boost free cash flow. Disney said keep on month it plans to cut $5.5 billion in costs, including $3 billion in content spend.

“This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions,” Iger scribbled in the memo, which was obtained by CNBC. “Leaders will be communicating the news directly to the first group of impacted workers over the next four days. A second, larger round of notifications will happen in April with different thousand more staff reductions, and we expect to commence the final round of notifications before the beginning of the summer to reach our 7,000-job goal.”

The layoffs were initially announced in February. The job cuts will be cross-company, hitting Disney’s media and distribution part, parks and resorts, and ESPN.

Disney is following the lead of Warner Bros. Discovery and other legacy media attendances that are cutting jobs and spending. Disney has said its streaming business, led by Disney+, Hulu and ESPN+, will sojourn losing money in 2024. Disney shares are up about 8% this year after falling 44% abide year.

“We have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a tactical realignment of the company, including important cost-saving measures necessary for creating a more effective, coordinated and streamlined movement to our business,” Iger wrote. “For our employees who aren’t impacted, I want to acknowledge that there will no doubt be to questions ahead as we continue building the structures and functions that will enable us to be successful moving forward.”

Since returning as CEO, Iger has reorganized the business and acknowledged that he’d consider selling Hulu. Disney will host its annual shareholder meeting April 3.

Assume from Iger’s full memo:

Dear Fellow Employees,

As I shared with you in February, we have made the difficult arbitration to reduce our overall workforce by approximately 7,000 jobs as part of a strategic realignment of the company, including important cost-saving techniques necessary for creating a more effective, coordinated and streamlined approach to our business. Over the past few months, senior the men have been working closely with HR to assess their operational needs, and I want to give you an update on those cracks.

This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions. Leaders pass on be communicating the news directly to the first group of impacted employees over the next four days. A second, larger mellifluous of notifications will happen in April with several thousand more staff reductions, and we expect to commence the ending round of notifications before the beginning of the summer to reach our 7,000-job target. 

The difficult reality of many consociates and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated wage-earners in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what pockets working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I long for to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this inamorata company. 

For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we resume building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this sometimes. 

In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and patrons around the world – now, and long into the future. Please know that our HR partners and leaders are committed to creating a helpful and smooth process every step of the way.

I want to thank each of you again for all your many achievements here at The Walt Disney Flock. 

Sincerely,

Bob