This will be a brutal week for employees of the Walt Disney Company.
Earlier this year, Disney CEO Bob Iger proposed his plan to help cut $5.5 billion in costs. This plan includes a devastating 7,000 job terminations. Iger’s mass eliminations will take place in three waves. The first wave started on March 27, resulting in thousands of layoffs from Disney Entertainment, Disney Parks, Experiences and Products, and ESPN.
Despite this first wave happening just weeks ago, we are now learning that the second wave has begun and will be complete come this week’s end.
Bob Iger’s Second Wave Begins
The second round of layoffs within the Walt Disney Company is underway. Similar to the first wave, this one is expected to target employees in all company branches. We will learn more about who is affected as the week progresses, but it is said that final terminations will happen this Thursday, April 27. Several thousand jobs will be cut. By Friday, 4,000 jobs will have been lost at Disney this year.
This news is heartbreaking to hear, but unfortunately, it is believed to be an important move for the company. The first wave of layoffs did cause a lot of controversies, with terminated employees saying they were punished for speaking out against the company. It will be interesting to see if that same situation happens with this second round.
Memo Delivered to Disney Employees
Co-chairman of Disney Entertainment Alan Bergmanm and Dana Walden delivered a memo to employees this morning, saying;
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.
Alan & Dana
Final Wave Not Far Away
Disney expects to reach roughly 4,000 of its projected 7,000 job cuts by end of week, with the first round of notifications going out as early as today, according to @Variety.https://t.co/D35VcjUVCe pic.twitter.com/5TlDXVRjWe
— Scott Gustin (@ScottGustin) April 24, 2023
After the second wave concludes this week, it won’t be long before the first wave begins. The third and final wave of job cuts will begin before summer, according to the Walt Disney Company. This wave will get Disney to its 7,000 termination target.