Disney to begin second wave of layoffs soon, 7000 employees likely to lose jobs

According to sources familiar with the circumstances, Walt Disney (DIS.N) will start a second round of layoffs on Monday that would affect thousands of employment as part of an effort to cut 7,000 jobs and save $5.5 billion in expenses.

According to Disney officials, the firm will remove "several thousand" jobs by Thursday, bringing the total number of employment cuts to 4,000.

According to the sources, the cuts will touch all of the company's business units, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products, although they are not expected to affect the hourly front-line employees who work at the theme parks and resorts.

According to an internal memo obtained by Reuters, layoff notifications will keep coming over the coming days.

"The senior leadership teams have been working diligently to define our future organization, and our biggest priority has been getting this right, rather than getting it done fast," Disney Entertainment co-chairmen Alan Bergman and Dana Walden wrote in the memo to staff.

"We recognize that it has been a period of uncertainty and thank you all for your understanding and patience," they said.

Disney unveiled its layoff plan in February along with a reorganisation that gave its creative executives back control of decision-making. It wants to develop a business strategy that is more organised.

Since the early adoption of video streaming, when traditional media businesses lost billions as they introduced rivals to Netflix Inc (NFLX.O), the entertainment industry has made cuts.

When Netflix reported its first subscriber drop in a decade at the beginning of 2022, media businesses started to cut down on expenditure as Wall Street started to put profitability ahead of customer growth.

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