Disney to Cut Over 2,500 Jobs in Third Round of Layoffs, Report Shows
Disney Launches Third Wave of Layoffs with Over 2,500 Expected to be Fired
In a move that sent shockwaves throughout the entertainment industry, entertainment conglomerate Disney announced a third round of layoffs that is expected to end with the firing of more than 2,500 staff, according to CNN.
The decision comes on the heels of the cancellation of the $1 billion Lake Nona project and the announcement that the Star Wars: Galactic Starcruiser resort hotel will also be shuttered. The company had laid off employees in two previous rounds in March and April respectively.
At this point, it is unclear which divisions and locations will be impacted by the latest wave of layoffs, but the final tally is predicted to be over 6,500, inching closer to the 7,000 job cuts that Disney CEO Robert Iger had previously outlined.
Iger had announced plans for these cuts back in February as part of a wider reconfiguration aimed at reducing approximately $5.5 billion in costs to the company. According to CNN, 30% of the reduction will be in labor, 50% will arise from marketing, and remaining 20% will be realized through reduced technology, procurement, and other expenses.
“Our new structure is aimed at returning greater authority to our creative leaders and making them accountable for how their content performs financially,” Iger said earlier this year.
With the entertainment industry already reeling from the effects of the COVID-19 pandemic and its expected long-term economic impact, the latest layoffs at Disney are yet another blow to workers in the industry.
News 6 has reached out to Disney for comment on the layoffs and is awaiting a response. The impact of these layoffs on the operations of the company, as well as the morale of the remaining employees, remains to be seen.
However, one thing is clear: The entertainment landscape has shifted irrevocably, and the long-term effects of the pandemic on the industry will continue to be felt for some time to come.
