Disney Will Layoff 15% Of Its Entertainment Division Starting Next Week

In February, The Walt Disney Company announced that it planned to cut 7,000 positions from its workplace of more than 220,000 as part of an overall strategy to cut $5.5 billion in annual costs.

The company also announced it would do so in phases. The first round of layoffs began in late March when the company let go a handful of executives, including Senior Vice President of Production for Hulu, Mark Levenstein, and Senior VP of Production Management & Operations For Freeform, Jayne Bieber.

The VP of Corporate Communications for The Walt Disney Company, Jeffrey R. Epstein, and Marvel Entertainment Chairman, Ike Perlmutter, was also let go.

Disney is preparing to begin its second phase of layoffs, cutting 15% of its entertainment division. According to Bloomberg, this round of layoffs will "span TV, film, theme parks, and corporate teams, affecting every region where Disney operates, said the people, who asked not to be identified because the details aren't yet public."

Employees are expected to begin being notified as early as April 24, 2023.

Bloomberg also stated that the Walt Disney Company declined to comment and that "shares were down 0.6% at $100.35 in pre-market trading amid a broader decline in stocks."

This new business strategy comes just months after the Walt Disney Company fired Disney CEO Bob Chapek and brought back Bob Iger, former Disney CEO, to take his place.

In November 2022, The Walt Disney Company dropped a bombshell as they announced that Bob Chapek, 62, would be stepping down as CEO, while Robert A. Iger, 71, would return to run the company, effective immediately.

"We thank Bob Chapek for his service," Susan Arnold, the board chair, said in a statement. "The board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the company through this pivotal period."

Before the news broke that Bob Iger would be returning as CEO, he emailed Disney employees, announcing his return to the company.

"It is with an incredible sense of gratitude and humility -and, I must admit, a bit of amazement -that I write to you this evening with the news that I am returning to The Walt Disney Company as Chief Executive Officer," Iger began his email by saying.

"I know this company has asked so much of you during the past three years, and these times certainly remain quite challenging, but as you have heard me say before, I am an optimist, and if I learned one thing from my years at Disney, it is that even in the face of uncertainty -perhaps especially in the face of uncertainty – our employees and Cast Members achieve the impossible," Iger continued in his email to Disney employees.

"Disney holds a special place in the hearts of people around the globe thanks to you, and your dedication to this company and its mission to bring joy to people through great storytelling is an inspiration to me every single day," he concluded.

Mr. Iger served as Disney's CEO from 2005 to 2020 and is considered one of the best leaders in Hollywood history, especially in the Disney community. He agreed to a two-year contract.

There is no confirmation of who will become CEO once Bob Iger's contract ends. Still, some of the top names mentioned include Dana Walden, Disney's entertainment co-chair; Kevin Mayer, a former Disney executive and CEO of TikTok; and Adam Silver, Commissioner of the National Basketball Association.