The third wave of layoffs at The Walt Disney Company began on May 22, 2023, and will impact roughly 2,500 people. Initial estimates thought that only 700 would be affected. No frontline cast members in the parks are intended to be a part of it.
The cuts are projected to affect positions across the board at the company and have not been aimed at any particular division. It is expected that television, which was hit hard in the previous round of layoffs, is largely spared this time.
The second wave involved cuts of around 4,000 of the total 7,000 layoffs. While this wave is still smaller, it is larger than originally anticipated. With layoffs exceeding original projections, it is possible that the initial planned count of 7,000 may now be higher.
CEO Bob Iger has promised $5.5 billion in reductions once the dust settles. Overall, entertainment saw a 15% reduction, including the dissolution of Disney TV Studios’ marketing, with Freeform and ABC executive layoffs.
Reasons for the Cuts
The majority of job cuts were delayed until after the April 3 shareholders meeting. Stock prices continue to be an issue. Following the May 10 second-quarter earnings call, Disney’s stock price fell by almost 9%.
Iger describes these decisions as a “significant transformation to realign Disney for sustained growth and success.” Ultimately, its stated aim is to return creativity and authority to leaders, as well as streamline operations.
The company reported a total of $21.8 billion in revenue last quarter. Parks, Experiences, and Products accounted for more than a third of that total, making $7.78 billion.
Glad that no front-line parks Cast Members are included in this most recent layoffs?