A source confirmed that the latest development will affect employees across key divisions of Walt Disney.
Like many other companies downsizing, the mass media company the walt disney company (NYSE:DIS) has begun laying off employees. It follows CEO Bob Iger’s announcement in February to lay off 7,000 employees as the company restructures. Walt Disney is working on creating a more “streamlined” business by reducing expenses and reducing staff. Notably, Iger has been making significant organizational changes since taking over from Bob Chapek in November 2022.
The CEO informed workers of the first three layoff rounds in the memo, noting that those affected would be informed. Walt Disney spread the firing over three rounds as victims of the first round of employee cuts were contacted by company leaders. After the first round of layoffs, Walt Disney plans additional job cuts in April. April round will be big and more employees will have to leave mass media company. Finally, the third round will start before the start of summer to cut a total of 7,000 jobs.
Walt Disney is laying off employees
The layoffs didn’t come as a shock as Iger prepared employees for the job cuts to come. The chief executive mentioned the firing while the company reported its first customer loss during Q1 2023. During the quarter, Disney+ global subscribers declined 2.4 million to 161.8 million from 164.2 million. The loss comes as Disney raised the subscription price for its Disney+ ad-free plan to $11 a month. As a matter of fact, analysts had expected a more severe loss of around 3 million customers following the price change.
Given that the target is $5.5 billion in cost savings, if Specified For her last month’s notification:
“As I shared with you in February, we have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a strategic restructuring of the company, which includes significant changes necessary to create a more effective, coordinated and streamlined Cost-saving measures included. Approach to our business.
A source confirmed that the latest development will affect employees across key divisions of Walt Disney. The divisions that could be largely affected are Disney Parks, Disney Entertainment, Corporates and Experiences & Products, the source said. While ESPN escaped first-round layoffs, the sports media conglomerate is expected to be touched in consecutive rounds. Another source mentioned the television production and acquisition departments as the first areas targeted for layoffs.
Walt Disney stock is trading at $95.2 in after-hours, following news of the employee layoffs. Shares of the company closed up 1.64% with a gain of 1.49% in the last five days. Its name has gained 10.06% since the beginning of the year and has gained 8.56% in the last three months.
Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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