One of the biggest media and entertainment companies worldwide, Disney, is about to start a challenging road of cost-cutting and restructuring. The COVID-19 pandemic and its subsequent economic repercussions have had an influence on the company, along with many others in the sector.
Because of this, Disney CEO Robert Iger announced in February that the company would be cutting 7,000 jobs in order to save billions of dollars. Three rounds of job cuts are anticipated, with the first round of notifications taking place this week. The areas most impacted by the layoffs will be the media and distribution segment, ESPN, and the parks and resorts division, according to CNBC.
Although it was difficult to make the choice to let go of so many people, the company believes that doing so will enable it to develop a more streamlined and productive business strategy. As Disney continues to develop the structures and operations that will help it succeed in the future, Iger’s email emphasised that there would be challenges ahead for those who stay with the firm.
In this challenging time, he did, however, also ask for patience and cooperation. A larger trend in the media sector is reflected in the cost-cutting initiatives being taken by Disney. In order to cut costs and stay viable, legacy media giants like Warner Bros. Discovery have also had to reduce their employees. It is hoped that by taking these steps, companies like Disney would be able to deal with the economic downturn and come out stronger on the other side.