Disney has successfully reached its objective of 7,000 layoffs, concluding the third phase of job cuts well before the summer, with notifications issued to the remaining affected employees. The impact of these layoffs was predominantly felt in the media divisions, with the parks being spared. Under the leadership of CEO Bob Chapek, Disney intends to continue streamlining its workforce globally, signaling a sustained effort initiated during the tenure of former CEO Bob Iger. This strategic move is part of Disney’s broader cost-cutting strategy, with the goal of realizing approximately $5.5 billion in savings. As of October 1, 2022, the layoffs account for 3.2% of Disney’s total worldwide headcount, which stands at around 220,000.
The timing of these job cuts coincides with the ongoing strike by the Writers Guild of America, Disney’s removal of content from streaming platforms, and the company’s recent restructuring into three core business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products. As part of its broader financial strategy, Disney aims to achieve an annualized reduction of $3 billion in non-sports content costs, a target to be realized over the upcoming years.
The comprehensive restructuring and cost-cutting measures underscore Disney’s commitment to adapt to the evolving landscape of the entertainment industry. These strategic moves are not only aimed at achieving significant financial savings but also at positioning Disney to navigate the challenges and opportunities presented by the rapidly changing dynamics of media consumption. As the company continues to evolve its business model, further adjustments and realignments may be anticipated to ensure Disney’s resilience and competitiveness in the market.