Entertainment giant Disney has directed managers to propose budget cuts and compile lists of employees who will be laid off in the coming weeks, the media reported.
It is unclear whether Disney will start laying off employees in small batches or lay off thousands all at once, but the company will announce that at least 4,000 current employees will be laid off sometime in April, reports Business Insider, citing sources.
The planned job cuts were announced ahead of Disney’s annual meeting on April 3.
The entertainment giant also announced a reduction in general entertainment aimed at adults and that it is considering options for what to do with Hulu, the streaming service that specialises in general-entertainment shows and is owned two-thirds by Disney and one-third by Comcast Corp, the report said.
In February, CEO Bob Iger announced to lay off 7,000 employees as Disney looks to save billions of dollars by restructuring the company, cutting content, and trimming payroll.
Disney expects to deliver approximately $3 billion in savings over the next few years, excluding sports.
He said that under the strategic reorganisation, there will be three core business segments: Disney Entertainment, ESPN and Disney Parks, Experiences and Products.
“This reorganisation will result in a more cost-effective, coordinated and streamlined approach to our operations and we are committed to running our businesses more efficiently, especially in a challenging economic environment. In that regard, we are targeting $5.5 billion of cost savings across the company,” said the CEO.
(Except for the headline this story has not been edited by PNP team and is published from a syndicated agency feed)
Posted by: Chetan Sharma
Published on: 19 March 2023
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