Disney CEO Bob Iger announced on Monday that the company will begin the first of three planned rounds of layoffs, with the goal of eliminating 7,000 jobs. This decision is part of a larger cost-cutting initiative to streamline operations amidst ongoing media industry turbulence and economic uncertainty.
In a memo obtained by CNN, Iger outlined that the first wave of layoffs will commence this week, followed by a more extensive round in April, and a final round before the start of summer. These cuts represent about 3% of Disney’s global workforce, which stood at around 220,000 employees as of October 1. Iger emphasized in the memo that the company’s primary focus remains to deliver exceptional entertainment to audiences worldwide while addressing current challenges.
Disney’s decision to cut jobs comes on the heels of Iger’s return to the company in November, following the dismissal of former leader Bob Chapek. These layoffs reflect the company’s efforts to adapt to the rapidly changing media industry landscape and maintain its position as a global entertainment powerhouse.
Disney is not alone in implementing job reductions. Other major US companies, such as Walmart, Amazon, Bed Bath & Beyond, and Indeed, have also recently announced significant cuts. A combination of factors, including cooling job markets, shifting economic conditions, and industry downcycles, have driven these decisions.
For instance, Walmart, the largest employer in the US, asked around 200 workers at various facilities to look for other jobs within the company to better prepare for future customer needs. Meanwhile, Indeed announced cuts affecting 2,200 employees due to the cooling job market following the post-Covid boom.
This recent surge in job cuts among leading US companies highlights the economic uncertainty and the need for businesses to reassess their strategies to remain competitive. As industries continue to evolve, companies must be agile in adapting their operations, focusing on growth opportunities, and investing in innovation.
As the media industry grapples with unprecedented changes and economic uncertainty, companies like Disney face the challenge of restructuring their operations to stay competitive. This wave of layoffs underscores the importance of adaptability and innovation in an ever-evolving landscape. Companies must reassess their strategies and invest in areas with growth potential to weather the storm and emerge stronger on the other side. To do so, they may need to embrace digital transformation, prioritize sustainability, and invest in employee development to ensure they have the right talent and resources for the challenges ahead.