Disney CEO Bob Iger has sent an email out to employees today sharing that layoffs will be starting this week. This comes as the company is undergoing substantial cost cutting across the board, including the reduction of 7,000 jobs. Disney is looking to save $5.5 billion.
In the email Iger shared that this week Disney will “begin notifying employees whose positions are impacted by the company’s workforce reductions. The first wave of notifications will happen in the next four days. This will be followed by a second round of notifications in April that will be much larger and include several thousand employees. A final wave of notifications is set to happen before the beginning of summer.
Iger acknowledged the difficulty found in the situation. “This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about,” Iger said. He also thanked those who are leaving for all of their contributions and devotion.
Looking forward, Iger also noted that the future will still have challenges as Disney seeks to be successful. He asked for “continued understanding and collaboration during this time.” Iger continued by saying, “In tough moments, we must do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world –now, and long into the future.”
The email concluded with Iger with a word of thanks for “your many achievements here at The Walt Disney Company.”
The Walt Disney Company initially announced these layoffs in February. At the same time, the company was restructured into three main segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. The announcement was made during a February 8 earning call where Iger also said that the restructuring, “will result in a more cost-effective coordinated and streamlined approach to our operations, and we are committed to running our businesses more efficiently, especially in a challenging economic environment.”
Alan Bergman and Dana Walden are the co-chairs of Disney Entertainment, Jimmy Pitaro is the chairman of ESPN, and Josh D’Amaro is the chairman of Disney Parks, Experiences and Products. This new structure reverses and simplifies many of the changes made by former Disney CEO Bob Chapek and dismantles the Disney Media & Entertainment Distribution segment he created to determine where content should be delivered. Many of the layoffs are expected to impact the former DMED segment, that has since been dismantled. However, layoffs may hit all segments in the company.
Bob Iger returned to run The Walt Disney Company in November 2022 after officially retiring from the company at the end of 2021. His return is to be for two years, during which he is tasked with setting Disney on a solid course for success for the future and also helping find a successor for the role of CEO.
Iger’s full email to employees can be read below. Daps Magic will continue to follow this story and provide updates as they become available.
Bob Iger Email
Dear Fellow Employees,
As I shared with you in February, we have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more effective, coordinated and streamlined approach to our business. Over the past few months, senior leaders have been working closely with HR to assess their operational needs, and I want to give you an update on those efforts.
This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions. Leaders will be communicating the news directly to the first group of impacted employees over the next four days. A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to to commence the final round of notifications before the beginning of the summer to reach our 7,000-job target.
The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company.
For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this time.
In tough moments, we must do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world –now, and long into the future. Please know that our HR partners and leaders are committed to creating a supportive and smooth process every step of the way.
I want to thank each of you again for all your many achievements here at The Walt Disney Company.
Sincerely,
Bob
