Disney CEO Robert Iger announces layoffs starting this week, with 7,000 job cuts expected
There will also be a “larger” round of layoffs in April, and a third round before summer. “There will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward,” the CEO told staff in a memo.
This week will see the commencement of The Walt Disney Company’s layoffs.
Disney CEO Bob Iger announced two additional rounds of layoffs will take place in the coming months in a statement to staff on Monday. The business will now start the process of contacting affected employees.
As the corporation restructures around three key divisions—Disney Entertainment, ESPN, and Parks, Experiences, and Products—Iger stated in February that the firm would eliminate 7,000 jobs. Iger wrote on March 27 that the reductions are “essential for building a more effective, integrated and streamlined approach to our company,” and that senior leaders have been assessing their operational requirements ever since he announced the reductions.
Iger said in his memo that a second round of layoffs planned for April will be “larger” than the round this week, with “several thousand” cuts set to take place at that time. A third round of cuts will take place “before the beginning of the summer to reach our 7,000-job target.”
“For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this time,” Iger added. “In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future.”
Iger returned as Disney’s CEO in November, with his successor and predecessor Bob Chapek departing after only about two and a half years on the job.
“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” Disney’s board chair Susan Arnold said at the time.
Kareem Daniel, who oversaw the Disney Media and Entertainment Distribution Division and was in charge of the majority of the company’s non-parks revenue, was fired by Iger in his first action after taking over. Iger then declared that DMED will close so that the creative divisions could once again be in charge of making strategic decisions and handling finances.
Josh D’Amaro now heads the parks and products division, while Jimmy Pitaro continues to lead ESPN. Dana Walden and Alan Bergman have been appointed to operate Disney Entertainment.
The three sets of layoffs are anticipated to affect basically every segment of the corporation, but it is not yet apparent how they will affect Disney’s corporate structure or which divisions will be affected.
Below is Iger’s memo from March 27.
Dear Fellow Employees,
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 company, including important cost-saving measures necessary for creating a more effective, coordinated and streamlined approach to our business. Over the past few months, senior leaders have been working closely with HR to assess their operational needs, and I want to give you an update on those efforts.
This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions. Leaders will be communicating the news directly to the first group of impacted employees over the next four days. A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to commence the final round of notifications before the beginning of the summer to reach our 7,000-job target.
The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company.
For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this time.
In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future. Please know that our HR partners and leaders are committed to creating a supportive and smooth process every step of the way.
I want to thank each of you again for all your many achievements here at The Walt Disney Company.
Sincerely,
Bob