Photo by Charley Gallay/Getty Images for Disney
Disney isn’t safe from the ongoing layoffs that have been occurring lately. It was reported that the company is facing layoffs, affecting thousands of people.
Disney CEO, Bob Iger announced the news during the House of Mouse’s Q1 earning call. According to Deadline, 7000 people will be losing their jobs as part of a “cost-cutting measure.” It was reported that domestic employees will be hit the hardest, but the Parks and Resort Division will be lightly affected. Iger commented on this decision as “something he didn’t take lightly,” despite having massive respect and appreciation for his employees.
“I have enormous respect and appreciate for the dedication of our employees worldwide. While this is necessary to address the challenges we face today, I do not make this decision lightly.”
Disney’s shares took a nosedive back in November 2022. It was revealed that the company’s stock was at its lowest since 2014, closing at $86.75. During that financial report, there were no announcements of layoffs or if The Walt Disney Company plans to restructure its priority.
Now, it seems like the Walt Disney Company decided to pull the trigger, with Iger also announcing that it wants to “drill down” its streaming business, with the CEO describing it as his “No. 1 priority.” Deadline also reported that the CEO also “vowed” to not abandon its theater and linear TV business. And it makes sense considering Disney has also made profit gains recently at the box office, with Avatar: The Way of Water grossing over $2.1 million at the box office and Black Panther: Wakanda Forever nominated for an Oscar in 2023. The company has also announced a new film lineup, which includes a third installment of Frozen.
At the moment, The Walt Disney Company has over 220,000 employees globally, and these cuts will only affect 3% of the company. It’s currently unknown which areas will be heavily affected, but this comes to show that even the Mouse himself couldn’t escape the pending layoffs.