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FutureStarrDisney Cuts 7000 Jobs Is this the End?
Disney is shedding 7,000 jobs, the latest corporate giant to undertake mass layoffs as it seeks to cut costs. This restructuring affects approximately 3% of their workforce.
On Wednesday, CEO Bob Iger announced a goal to save $5.5 billion in costs over five years.
On Wednesday, The Walt Disney Company revealed that it will be laying off 7,000 employees as part of a cost-cutting initiative. CEO Bob Iger stated on the call that this move is part of an overall reorganization that could save $5.5 billion over five years.
Iger stressed the significance of ensuring Disney can continue providing "world-class entertainment" to its audiences without compromising service quality due to cost cuts.
As part of its cost-cutting strategies, Disney is reorganizing into three core business segments: Disney Entertainment, Parks, Experiences and Products and ESPN. Iger stated that this restructuring will give creative leaders more authority and hold them accountable for their content.
Unfortunately, this cost-cutting initiative comes at a time when many companies in the media and entertainment industries are facing difficulty maintaining their staffs. This may lead to attrition as employees leave the company.
This can result in increased turnover which in turn affects employee satisfaction and even further staff shortages.
Disney Parks have experienced a severe shortage of staff at both of their theme parks. This shortage has had an adverse effect on guest capacity, restaurant operations and upcharge offerings at both parks.
Disney Parks have been unable to reach full capacity due to this issue, and Disney is once again facing it. Furthermore, their relocation to Lake Nona in Florida has created a staffing shortage there too.
Ultimately, the company must find other ways to expand its park and restaurant capacities. It needs to increase attendance at the attractions, while simultaneously hiring more Cast Members for those roles. This task won't be easy, but it is necessary if it wants to remain successful in the long run.
Disney has announced plans to cut 7000 jobs globally in an effort to reduce its workforce. This represents 3% of their global workforce.
Disney is undertaking a massive cost-cutting initiative as it struggles to make a profit from its streaming service.
Disney plans to reorganize its operations to increase efficiency and return power to creative executives, according to Reuters. The reorganization also involves streamlining technology operations.
A larger wave of notifications will take place in April and a final one before summer officially starts, according to Iger's words.
Layoffs will affect employees across the company, including those at their theme parks in Orlando, Florida. However, hourly frontline operations positions are unlikely to be affected, according to Spectrum News 13 in Florida.
Staffers are dealing with the news of impending cuts, leaving many uncertain about their company's future. It remains uncertain if 7,000 workers being let go will be enough to sustain operations going forward.
With Bob Iger back at the helm of Disney , there has been increased pressure on them to get their finances in order.
On a recent earnings call, CEO Bob Iger revealed their plans to reduce 7000 jobs in order to save $5.5 billion. These cuts are part of an ongoing strategy designed to reduce expenses and boost profitability at Disney.
Disney+, its streaming unit, lost more than $1 billion last quarter and is now considering cost-cutting measures to get back on track.
Disney often take this measure when they have large workforces as it helps free up capital for other projects.
Although a hiring freeze can have an adverse effect on morale, it won't necessarily affect hourly frontline operations in parks.
Unfortunately, this could result in increased employee turnover at their Parks.
Their is also restructuring its television studios in an effort to cut costs.
Disney planning to cut hundreds of jobs from their television studios as part of a restructuring initiative. Some employees who were let go will likely be transferred to other studios, while others will leave the company altogether.
Disney's distribution division, led by Kareem Daniel and including digital marketing, mobile apps and online sales, may also be affected.
Disney announced on Wednesday that they are eliminating 7,000 jobs, or 3.6% of their global workforce, to save $5.5 billion through reorganization measures.
On a conference call following the results release, Disney's CEO Iger outlined several strategic initiatives designed to address various challenges facing his company.
Disney successful Parks and Resorts division will remain unchanged, but it no longer serves as its primary source of profit. Instead, this cut will disproportionately impact other parts of their direct-to-consumer streaming service which is losing over $1 billion each month.
Additionally, Disney promised that they would ask its board to restore its dividend back to its pre-COVID level by year end.
Disney said it aims to break even on streaming by 2024; however, without cost-cutting measures this won't happen.
Reorganization, part of the Disney's goal to save $5.5 billion this year, will lead to job cuts across all divisions - including theme parks. Hourly frontline operations positions are not expected to be affected, but management expects significant savings through this reorganization.