Round 3 of Disney job cuts starting
More employees are losing their positions at Disney amid the company reportedly starting its third planned round of layoffs.
Monday marked the day that The Walt Disney Co.’s third round of cuts kicked off, according to Deadline. In the wave, over 2,500 workers will reportedly get slashed from the entertainment giant’s workforce.
The outlet said the next few months could also see fewer numbers of people laid off at the company, citing unnamed sources. FOX Business reached out to Disney for comment but did not receive a response by the time of publication.
In a company-wide memo obtained by FOX Business in late March, CEO Bob Iger had said the timing of the "final round of notification" in planned layoffs would be "before the beginning of the summer." Across the three rounds, Disney aimed to trim 7,000 jobs.
The company shed about 4,000 from its headcount over the course of the two prior rounds, the first of which took place in March and the second of which happened in April, Reuters previously reported.
Disney’s workforce included some 166,000 in the U.S. and 54,000 in other countries at the beginning of October, according to the most recent annual report the company filed in late November. Of that 220,000 total, over three-quarters of them were full-time.
The company has said its ongoing, massive restructuring, which involves job cuts, switching to three business segments and other steps, will bring it $5.5 billion in savings. The move was announced about 3.5 months ago, when Disney held its first-quarter earnings call.
While speaking on the latest quarterly call with analysts and investors earlier in May, Iger said the entertainment giant was "on track to meet or exceed" the $5.5 billion savings target.
"I’m pleased to say the strategy we detailed last quarter is working," he said. "Our new organization structure is returning authority and accountability to our creative leaders, as well as allowing for a more efficient, coordinated and streamlined approach to our operations."
For the second quarter, Disney saw $21.82 billion in revenue and $1.27 billion in net income.
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