Disney concludes mass layoff of 7,000 employees

Disney concludes mass layoff of 7,000 employees

Mass layoffs at The Walt Disney Company have come to an end with a total cut of 7,000 employees. According to a previous report from The Hollywood Reporter, the company had to say goodbye to several thousand as a measure to regain financial balance in the face of excessive expenses and mediocre earnings on assets. The personnel cuts began in March of this year and finally concluded on Friday of last week, he confirmed. Variety this Wednesday.

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According to the report, the company still plans to make further cuts in its workforce, but for now Disney has wrapped up rounds of layoffs, reaching the number of 7,000 it set a few months ago, following the return of Bob Iger as executive director.

After what iger resign as CEO of Disney in February 2020, Bob Chapek he assumed the position of CEO, but the latter did not lead the company in the right direction. After a couple of bad decisions that had a big impact, his administration left the company in a difficult financial position and the executive had to leave the position. At the end of November of last year, Chapek was removed from the business and iger took the reins again, this time with the purpose of cleaning up the mess of Chapek and return stability to the famous mouse company.

In early February of this year, it was announced that Disney would enter a restructuring phase, which included a huge wave of 7,000 layoffs, as well as a review and reorganization of all its branches that, according to the company’s projections, will result in a savings of up to US $5.5 billion. In his first earnings report since his return as CEO, iger announced a radical cost-cutting strategy, which included massive staff cuts. This began on March 27 with the first round of layoffs. The second wave, which brought Disney’s total to 4,000 cuts, occurred the week of April 24 and the third and final one concluded on May 26.

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According to the information, the 7,000 layoffs represent 3.2% of Disney’s total workforce, which reaches 220,000 worldwide. The massive cut comes amid an intense strike by the Writers Guild of America and Disney’s risky decision to remove content from its streaming service.

The restructuring and layoffs come as a plan to dismantle Disney Media & Entertainment Distribution (DMED), the company’s product and technology team established by Chapek and directed by the ex-director’s former colleague, kareem daniel. DMED seized power, taking over everything from advertising for Disney and Disney Plus content, to distribution, operations and technology, to decisions about how content was released, disempowering the company’s creative minds. . kareem daniel left the post when iger announced his return as CEO in November, with the new president vowing to return power to artists.

As announced by the executive, his first move is the formation of Disney Entertainment, which will group Disney Studios, General Entertainment, Animation, Disney+, 20th Century Studios, Searchlight and Hulu, with the current director of General Entertainment, Dana Waldenand the director of Studios, allan bergman, as new co-chairs of the unified branch. On the sports side nothing will change. ESPN, which will continue under the command of james pitaroit will remain a separate entity and will include ESPN+.

In a previous earnings report, iger He said the shakeup was necessary to empower storytelling and creativity, which is the lifeblood of Disney, but is also designed to hold this branch accountable for the financial performance of the content they produce. This new group will be in charge of overseeing the content that Disney makes, how it is distributed and monetized, and how it is marketed.

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