Almost every day, major companies announce job cuts. Now, Disney has announced that it will lay off 7,000 employees in an effort to save costs.
“ While this is necessary to address the challenges we face today, I am not making this decision lightly ,” CEO Bob Iger said during a quarterly earnings call. “ I have tremendous respect and appreciation for the talent and dedication of our employees worldwide. And I am mindful of the personal impact of these changes .”
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The layoffs represent about 3.2% of Disney's total workforce
Disney is the latest major company to announce mass layoffs. The workforce reductions have been particularly noticeable in the tech, with Amazon, Twitter, Microsoft, Meta and Google all laying off thousands of workers in recent months.
See also: eBay: Announced layoffs of 500 employees
Disney's job cuts are part of a cost-saving plan, Iger said. The company aims to save $2.5 billion in what it calls "non-content" costs and said it will cut another $3 billion from content costs, excluding sports.
Although Disney reported its first-ever drop in Disney Plus subscribers, its profitability improved and investors appeared to cheer the cost-saving initiative and the news that Disney would resume its dividend distribution.
See also: Dell: Layoffs of 6,650 employees due to reduced sales
The last time Disney laid off workers was during the height of the pandemic. In November 2020, it said it would lay off 32,000 workers, mostly at its theme parks.
Source: www.cnet.com
