EXCLUSIVE: The third wave of layoffs at Disney got under way today, sources tell News Brig.
It is estimated to effect around 700 employees across the board at the company, we’re told. While Parks and Resorts remain mainly untouched, the pink slipping this week isn’t aimed at any particular division. We hear television, which was hit hard in the second round, is largely spared this time with a small number of layoffs, we hear.
Following the timeline of cuts Disney CEO Bob Iger confirmed in late March, this is expected to be the last of the significant layoffs at Disney for a while. However, there many still be some smaller cuts in the next couple of months, sources say.
The initial wave of began on March 27 when Iger confirmed the plan for three rounds of layoffs as the company looks to reduce its workforce by about 7,000 employees.
The second and largest wave, which brought the number of eliminated positions to 4,000, began April 24. The company had said that it expected a third round before the start of summer.
The new wave of layoffs comes as media companies are facing effects from the ongoing writers strike, which is bringing film and TV development and production to a halt.
Disney revealed last February that it expects to realize $5.5 billion in cost savings as a result of the layoffs and other austerity measures. ESPN and Parks, Experiences and Products, the other two corporate divisions, will see staff cuts along with Entertainment. No frontline operational workers at the company’s theme parks are expected to lose their jobs, however.
Iger began outlining plans for downsizing soon after returning as Disney CEO last November. One area targeted for cuts has been the centralized distribution organization created by his predecessor, Bob Chapek.
The company this week is starting to remove dozens of titles from its streaming platforms, also as a cost-cutting measure.