Story by By Dawn Chmielewski •
: A rain spout stylized with the outline of Disney character Mickey Mouse is seen on a building at The Walt Disney Co. studios in Burbank© Thomson Reuters
(Reuters) - Walt Disney Co will begin a second wave of layoffs on Monday, as it works toward eliminating 7,000 jobs to help save $5.5 billion in costs, according to sources familiar with the matter.
The company is expected to cut "several thousand" jobs in layoffs that begin Monday and continue through Thursday. With the latest round of reductions, Disney officials say the company will have culled a total of 4,000 jobs.
The cuts will occur across the company's business segments, including Disney Entertainment, ESPN and Disney Parks, Experiences and Products, according to the sources, but are not expected to affect the hourly frontline workers employed at the parks and resorts.
Disney announced its layoff plan in February, together with a sweeping reorganization that restructured the company and returned decision-making to Disney's creative executives. Its goal is to create a more streamlined approach to its business.
The entertainment industry has retrenched since its early euphoric embrace of video streaming, when established media companies lost billions as they launched competitors to Netflix Inc.
Media companies started to rein in spending when Netflix posted its first loss of subscribers in a decade in early 2022, and Wall Street began prioritizing profitability over subscriber growth.
On March 27, Disney began notifying employees who were affected by the workforce reductions, and said a second, larger round would occur in April. A third round is anticipated before the start of summer.
(Reporting by Dawn Chmielewski in Los Angeles; Editing by Sonali Paul)
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