BURBANK, California: Walt Disney has begun its planned lay off of 7,000 staff, which was announced earlier this year.
A letter from Chief Executive Bob Iger sent to employees said that the company aims to control costs and create a more "streamlined" business, with several major divisions being affected, such as Disney Entertainment, Disney Parks, Experiences and Products.
The current round of job cuts will not include staff from ESPN, but it is expected to be included in later rounds.
Since the early adoption of video streaming, established media companies have lost billions of dollars after launching competitors to Netflix, forcing the entertainment industry to cut spending after Netflix posted its first loss of subscribers in a decade in early 2022, and Wall Street began prioritizing profitability over subscriber growth.
"Disney would begin notifying the first group of employees who are impacted by the workforce reductions over the next four days. A second, larger round of job cuts will happen in April, with several thousand more staff reductions. The final round will start before the beginning of the summer," Iger said in his letter.
In February, the Burbank, California-based entertainment conglomerate said to save $5.5 billion in costs and make its money-losing streaming business profitable, it would cut 7,000 jobs.
The company has closely guarded the details of the firings, but they are expected to happen before Disney's annual shareholder meeting on 3rd April.