Disney, one of the largest media and entertainment companies in the world, is set to embark on a difficult journey of cost-cutting and restructuring. The company, like many others in the industry, has been impacted by the COVID-19 pandemic and its resulting economic fallout. As a result, Robert Iger, CEO, Disney, announced in February that the company would be laying off 7,000 employees in order to save billions of dollars.
The job cuts are set to be implemented in three rounds, with the first set of notifications happening this week. The media and distribution segment, along with ESPN and the parks and resorts division, will be the areas most affected by the layoffs, according to CNBC. While the decision to let go of so many employees was a difficult one, the company hopes that it will be able to create a more effective and streamlined approach to its business as a result.
Iger’s memo emphasised that there will be challenges ahead for those who remain with the company, as Disney continues to build structures and functions that will enable it to be successful in the future. However, he also asked for understanding and collaboration during this difficult time.
The cost-saving measures being implemented by Disney are part of a broader trend in the media industry. Legacy media companies, such as Warner Bros. Discovery, have also had to reduce their workforce in order to cut costs and stay afloat. The hope is that these measures will allow companies like Disney to weather the storm of the pandemic and emerge stronger on the other side.
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