A total of 4,000 people will be dismissed in April, with Disney implementing a large-scale personnel reduction plan to dismiss 7,000 people



The Walt Disney Company (Disney) is implementing a large-scale workforce reduction plan targeting a total of 7,000 people, with a second workforce reduction at the end of April 2023. Thousands of employees are expected to be laid off as a result of this staff reduction.

Walt Disney Co to begin second wave of layoffs, cutting several thousand jobs - sources | Reuters

https://www.reuters.com/article/walt-disney-layoffs-idTRNIKBN2WL0V2



Disney's latest and biggest round of layoffs has begun - The Verge
https://www.theverge.com/2023/4/24/23690188/disney-layoffs-bloodbath-round-2

During the financial results briefing for the first quarter of 2023 (October to December) announced on February 8, 2023, Disney targeted 7,000 people, which is equivalent to about 3.6% of all employees, as an initiative to reduce costs. announced a large-scale layoff. It is estimated that this personnel reduction will result in a cost reduction of 5.5 billion dollars (about 740 billion yen).

Disney announces that it will reduce the workforce by 7,000 people, Disney + and Hulu's operating deficit will exceed 140 billion yen - GIGAZINE



Disney plans to implement this personnel reduction multiple times, and Reuters reported that the second personnel reduction was implemented on April 25. The job cuts bring the total number of employees laid off to 4,000, a Disney official told Reuters.

According to sources, the personnel cuts were made at one of Disney's main business segments , Disney Entertainment , which oversees the company's video content business, Disney's sports channel ESPN , and Disney Entertainment. It seems that it is the entire business division of the company, including Disney Parks Experience Products, which is in charge of planning, development and management of the theme resort business, which is one of Disney's main businesses. The cuts are not expected to affect hourly workers at Disney's parks and resorts.



According to an internal document independently obtained by Reuters, the notice of this reduction will be made over the next few days.

In this internal document, Disney Entertainment Chairman Alan Bergman and Dana Walden said, 'We recognize this is an uncertain time, and we appreciate your understanding and patience. ” is written.

In February 2023, Disney announced plans for a large-scale workforce reduction, as well as an organizational restructuring plan to return group decision-making to the creative executives. Reuters points out that these goals are to adopt a more streamlined approach to business.

The entertainment industry was an early adopter of video streaming technology, but the market has been gradually shrinking since then. Disney is also launching its own video streaming service, Disney +, to compete with Netflix. It was reported that Disney+

had more paying members than Netflix due to its lineup of original content, but in the first quarter of 2023, Disney's customer direct sales department, including Disney+, was $ 1.5 billion (about 200 billion yen). We are running an operating deficit.



It should be noted that Disney put into practice a personnel reduction plan to dismiss 7,000 employees from March 27, 2023, and about 4,000 people will be dismissed in the first round and this round. becomes. And it seems that the third round will be held before summer.

in Note, Posted by logu_ii