Earlier this year, Disney CEO Bob Iger announced that he was going to have to make some serious changes to the company in order to get the finances back on track to focus on profitability.   As part of his plan to save over $5 billion across the company, over 7000 job cuts were going to be taking place in three waves.  The first wave of cuts happened last month, but now the company has moved into the next stage, with Disney Entertainment announcing plans for its big cuts this week, which is expected to take the total to around 4000 jobs cut, with a final wave of job cuts expected later this summer.  According to Deadline, up to 15% of the entertainment division could be laid off, as Bob Iger looks to reduce costs and produce less “undifferentiated general entertainment”.

Disney isn’t the only company to drastically reduce its cost, as many other studios and tech companies have been doing the same.  And as Disney has been so focused on chasing subscribers for its streaming services, it has drastically overspent and is now looking to make changes to make its streaming services more profitable.

Today, Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden released a memo to its cast members, informing them of the impending cuts, which begin today and will be taking place throughout the week.

Here is the full memo from Bergman and Walden:

Team,

As you all know, a few weeks ago the company began notifying employees whose roles are impacted as part of our overall business realignment and cost-savings efforts. We wanted to share that notifications will continue in many areas of the company over the next several days. In addition, restructuring in various businesses will continue for the next couple of months, and we do anticipate there will be further impacts before the summer, as previously shared. Each team is in a different place in this process, and your leaders will be sharing more context for your group soon.

These are hard decisions and not ones we take lightly – but every decision has been made with considerable thought, and we are doing everything we can to make sure this process is conducted with respect and compassion. 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. We recognize that it has been a period of uncertainty and thank you all for your understanding and patience.

This is a time of transition for Disney, and these changes affect everyone, whether or not your role is impacted. We are committed to supporting you through this period and encourage you to reach out to your leader or HR partner with any questions or for guidance, as needed.

While we are confident that these efforts will better position us for the future, we realize this all takes a toll. We want to acknowledge the impact of this moment and simply reiterate our appreciation for all of you and the passion and dedication you’ve brought to the work we do every day. And for those who will be leaving the company, please know that your contributions are valued and appreciated – you have all played a meaningful role in making Disney what it is today.

With gratitude,

Alan & Dana

Roger Palmer

Roger has been a Disney fan since he was a kid and this interest has grown over the years. He has visited Disney Parks around the globe and has a vast collection of Disney movies and collectibles. He is the owner of What's On Disney Plus & DisKingdom. Email: Roger@WhatsOnDisneyPlus.com Twitter: Twitter.com/RogPalmerUK Facebook: Facebook.com/rogpalmeruk

View all posts