The Walt Disney Company announced on Monday that it will begin laying off 7,000 employees in stages as part of a 3% reduction in its workforce.
Company director Bob Iger said in a statement that affected workers would be notified this week.
“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 realignment of the business, which includes cost reduction measures necessary to create a more efficient, coordinated…and streamlined approach across our business,” Iger said in the statement sent to employees.
This week will see the first round of layoffs, while a second group of employees will be told in April that they will lose their jobs. The final batch will be announced before the start of the summer, according to the statement.
Iger thanked the employees who will be laid off “for their many contributions and dedication to this beloved company.”
Disney announced a series of reforms at the company in February as part of a plan to cut costs from the business by $5.5 billion.
The company’s restructuring plan also includes splitting the company into three segments: leisure, sports and parks.
The decision came after unfavorable quarterly results which reported a loss of 2.4 million subscribers to the Disney+ service.