The Walt Disney Co. this week is starting to implement the layoff of 7,000 employees planned by CEO Bob Iger as part of his effort to bolster profitability at the company.
Employees impacted in the first of three waves of layoffs are being contacted over the next four days, Iger said in a memo to staff.
The next round of layoffs will happen in April. That will be the largest round of staff reductions.
The company expects to complete the layoffs before the beginning of summer, Iger said, adding that the company aims to make to process “supportive and smooth.”
Iger announced plans to restructure the company and cut costs during the company’s fourth-quarter earnings call in February. At the time, Disney was under pressure from an activist investor who wanted it to take steps to boost profits and raise the prices of Disney shares.
“As I shared with you in February, we have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more effective, coordinated and streamlined approach to our business,“ Iger said in the memo. “Over the past few months, senior leaders have been working closely with HR to assess their operational needs, and I want to give you an update on those efforts.
“The difficult reality of many colleagues and friends leaving Disney is not something we take lightly,” he continued. “This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about.”
Iger asked staffers who aren’t impacted by the layoffs to continue delivering exceptional entertainment to audiences and guests around the world.
“I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward,” he said. “I ask for your continued understanding and collaboration during this time.”
Disney shares were trading at $94.93, up nearly 1%, in midday trading Monday. ■
