Walt Disney Co. has announced a series of layoffs and workforce reductions as part of its strategic realignment and cost-saving measures to create a more effective and streamlined approach to the business. The company plans to cut approximately 7,000 jobs by Summer 2023, with several rounds of layoffs to follow over the next few months. Specific executives will be departing from Disney as part of the layoffs, including Isaac Perlmutter from Marvel Entertainment.
Layoffs and Job Cuts
The layoffs will not impact frontline Cast Members at Walt Disney World or Disneyland, but there will be layoffs in salaried and white-collar roles. Despite these changes, the company plans to continue hiring in certain areas as it has been unable to fill certain key roles due to staffing shortages.
Unfortunately, the company’s handling of this process has been criticized for the lengthy delay and unnecessary prolonging of the layoffs, which introduces anxiety and uncertainty among employees. However, CEO Bob Iger acknowledges the difficult reality of many colleagues and friends leaving Disney while also getting buy-in from Disney executives on the need to cut costs across the company.
Elimination of Metaverse Division
As part of these staff cuts, Disney eliminated its next-generation storytelling and consumer experiences unit. The small division was developing metaverse strategies and had all 50 or so members lose their jobs. The metaverse division was a small unit aimed at finding ways to tell more interactive stories in immersive formats using Disney’s extensive library of intellectual property.
Although eliminated, Iger seems to be bullish on the metaverse as he invested in and joined the board of a startup that lets users create online avatars for use in metaverse applications. However, the metaverse is still many years from going mainstream, causing frustration among big tech companies that invested large sums in the technology.
Job Cuts at ESPN
ESPN has also been affected by the Disney’s cost-cutting measures, but the network has not yet received specific details on any impact to its workforce. A hiring freeze has been in place for several months, but job postings were made for specific areas of need.
Sonia Coleman has been appointed as the new chief human resources officer at Disney to oversee these changes. Jimmy Pitaro, chairman of ESPN, is accountable for his business’s costs and revenue generation.
In conclusion, Walt Disney Co. is undergoing a major realignment and cost-saving process, which is having an impact on its workforce. Nevertheless, the company is striving to create a more effective and streamlined approach to its business while still hiring for certain roles when needed. The layoffs have introduced anxiety and uncertainty among employees, but CEO Bob Iger acknowledges the difficult reality of the situation while trying to get buy-in from executives on these moves.
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