Significant expansion after the COVID-19 pandemic has taken a toll on the entertainment industry, with Disney being no exception.
After announcing the layoff of 7,000 employees back in March, the entertainment giant has begun the second of three rounds of company-wide layoffs aimed at getting the company back on solid financial footing, as shared by Reuters.
The new round of layoffs will help the company save $5.5 billion USD (roughly $7.4 billion CAD) in costs, Reuters reports according to sources familiar with the matter.
The layoffs will affect multiple departments across the company, including ESPN, Disney Entertainment, the products division, and Disney Parks’ corporate leadership. However, frontline hourly workers at Disney’s parks and resorts are not expected to be affected by the cuts.
“The senior leadership teams have been working diligently to define our future organization, and our biggest priority has been getting this right, rather than getting it done fast,” Disney Entertainment co-chairs Alan Bergman and Dana Walden said in an internal staff memo.
The third round of layoffs is “anticipated” before the start of summer, according to Reuters. “We recognize that it has been a period of uncertainty and thank you all for your understanding and patience,” said Bergman and Walden.