Disney to eliminate thousands of jobs
Disney is planning to fire thousands of employees, including 15% of those in its entertainment sector, in an effort to reduce its yearly expenditures by $5.5 billion. The employment layoffs will be felt throughout all of the company’s divisions, including TV, film, theme parks, and corporate positions, in every country where it conducts business. Some of the impacted employees will receive notice as soon as April 24. Disney chose not to respond to a question. The corporation is restructuring, and part of that effort is to reduce its commitment to general entertainment and increase its emphasis on franchise properties and well-known brands. The entertainment division will therefore be the focus of the cuts.
As part of the restructure, NewsOTG gathered that CEO Bob Iger tried to give creative leaders back their authority by promoting key subordinates like Alan Bergman and Dana Walden to co-chairmen of Disney Entertainment. The layoffs at Disney occur as every major media business, including Comcast Corp.’s NBCUniversal, Warner Bros. Discovery Inc., and Paramount Global, reduces staff as Wall Street focuses on the expensive cost of running online video platforms rather than the rising number of streaming subscribers. In February, Disney first disclosed its intention to cut 7,000 jobs from its more than 220,000-person workforce. However, the corporation is experiencing cuts, and it’s possible that more employees will be impacted.
After Bob Chapek, Iger’s hand-picked replacement, was fired in November due to a $1.47 billion quarterly deficit in the company’s streaming division, Iger took over as CEO of Disney again. The COVID-19 epidemic has severely impacted the media sector, forcing many businesses to make difficult decisions in order to survive. Particularly heavily struck by the pandemic, many of Disney’s theme parks had to close for extended periods of time. With more than 100 million customers globally, the company’s streaming service, Disney+, has been a bright spot for the business. The employees of Disney and the larger media business will undoubtedly be alarmed by the announcement of the job reduction.
With the success of its Marvel and Star Wars franchises, as well as the continuous expansion of Disney+ and other streaming services, the company’s emphasis on franchise properties and recognizable brands is expected to continue to pay off in the long run.