Disney on Monday begun its second round of layoffs, firing several thousand workers, sources told Reuters. The latest layoffs will bring the total reductions to nearly 4,000.
This comes after reports surfaced that the media giant is planning to eliminate 7,000 jobs to help save $5.5 billion in costs.
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.