Disney's Mass Layoffs To Begin This Week, Iger Warns

LOS ANGELES, CA — The Walt Disney Co.’s mass layoffs will begin this week, starting with the first of three rounds of 7,000 job cuts, CNBC reported.

The outlet obtained a memo from Disney CEO Bob Iger notifying employees “whose positions are impacted by the company’s workforce reductions.” Workers in the theme park and entertainment departments had been bracing for the news since last February when the company first announced the cutbacks.

“Leaders will be communicating the news directly to the first group of impacted employees over the next four days," the memo warned Monday. "A second, larger round of notifications will happen in April with several 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 target.

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

The Burbank-based Walt Disney Co.'s layoffs are part of an effort to cut $5.5 billion in costs.

The job cuts amount to about 3 percent of the entertainment giant's global workforce and were announced after Disney reported quarterly results that topped Wall Street’s forecasts.

Disney's streaming competitors such as Netflix have been shedding hundreds of jobs since the summer. Tech giants such as Amazon, Apple, Twitter and Meta have laid off tens of thousands of employees in the last six months. Meta layoff announcements were rewarded by the stock market. Meta’s stock value surged 20 percent in the wake of its initial cost-cutting moves.

The possibility of layoffs at Disney seemed likely with Iger regaining his footing in the CEO's office following the surprise ouster of CEO Bob Chapek in November.

See Also: Disney To Lay Off 7,000 In Blockbuster $5.5 Billion Cost-Cutting Move

As of Oct. 1, Disney employed 220,000 people, of which about 166,000 worked in the U.S. and 54,000 internationally. Solid growth at Disney’s theme parks helped offset tepid performance in its video streaming and movie business

Iger sought to soften the blow in his memo to employees.

"The difficult reality of many colleagues and friends leaving Disney is not something we take lightly," he wrote. "This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about."

The Associated Press contributed to this report.