Key points

  • Disney will begin its second round of layoffs on Monday. After this round, 4,000 people will have been laid off from the company.
  • A third round is expected to begin before the summer begins, Disney officials said.
  • Disney plans to cut 7,000 jobs from its workforce as part of a broader shakeup that will see the company cut costs by $5.5 billion.

disney it began its second-biggest wave of layoffs on Monday, bringing the total number of job cuts in recent weeks to 4,000 when the final round ends.

Earlier this year, Disney said it would cut 7,000 jobs from its workforce as part of a reorganization company’s largest that will reduce costs by $5.5 billion. The announcement was made during Bob Iger’s first earnings call. since he came back as CEO.

Disney officials said Monday they don’t take the departure of so many colleagues lightly. The 7,000 job cuts from its workforce equates to about 3% of the roughly 220,000 people employed by Disney as of Oct. 1, according to a securities filing, with about 166,000 in the United States and about 54,000 internationally. .

Disney informed employees of a first wave of layoffs on March 27, which resulted in cuts to its metaverse strategies unit and part of his office beijing.

The second round, which ends Thursday, will affect various divisions of the company, including Disney Entertainment and ESPN, as well as Disney Parks, Experiences and Products. The affected jobs will span across the country, from Burbank, California, to New York and Connecticut. CNBC reported last week that layoffs would begin soon at ESPN.

The company said it hoped to begin its third wave of layoffs before the start of the summer to reach the goal of 7,000. Disney has previously said it does not expect the layoffs to affect its employees. hours at its parks and resorts.

Iger said earlier this year Disney’s cost cuts would include $3 billion in cuts to content spending, excluding sports, and the remaining $2.5 billion in non-content cuts. . At the time, Disney executives said about $1 billion in cost reductions had already been underway since the last quarter.

The cost-cutting measures at Disney come as media companies have cut spending on content — and spending in general — as they seek to make their streaming business profitable. The reorganization was also put in place when Disney was still in business. middle of a power struggle with Nelson Peltz and his company Trian Management. Shortly after the announcement, Peltz canceled his proxy war.

This article It was originally published in English by Lillian Rizzo, for our sister network To learn more about CNBC, enter here.

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