By John Ikani
Disney has begun a fresh wave of job cuts this week as part of its ongoing efforts to eliminate 7,000 positions and save $5.5 billion.
Sources familiar with the matter said the layoffs will total several thousand jobs, and will affect all business segments of the company, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products, bringing the total number of jobs cuts to 4,000.
However, the cuts are not expected to affect hourly frontline workers employed at the parks and resorts.
According to an internal memo smade available to newsmen, the layoff notices will continue over the next few days.
Disney Entertainment co-chairmen Alan Bergman and Dana Walden wrote in the memo to staff that the senior leadership teams have been working to define the company’s future organization and that their priority has been getting it right, rather than getting it done fast.
“We recognize that it has been a period of uncertainty, and thank you all for your understanding and patience,” the memo read.
Disney announced its layoff plan in February, together with a reorganization that returned decision-making to its creative executives.
The company’s goal is to create a more streamlined approach to its business.
However, this move comes as the entertainment industry continues to retrench due to the early embrace of video streaming, with established media companies losing billions as they launched competitors to Netflix.
With Netflix recently posting its first loss of subscribers in a decade, media companies have begun to rein in spending and prioritize profitability over subscriber growth.
On March 27, Disney began notifying employees affected by the workforce reductions, with a second and larger round expected to follow in April, and a third anticipated before the start of summer.
