Disney Is Laying Off 7,000 Employees in a Bid to Cut Costs

The company plans to achieve about $5.5 billion in cost savings and job cuts are part of its cost-cutting measures.

The Walt Disney Company is planning to cut 7,000 jobs in an effort to cut costs, the CEO Bob Iger announced.

During an earnings call on Wednesday (via Variety), Iger revealed that Disney is planning to lay off 7,000 people which represents about 3.2% of the company's total headcount which, as of October 2022, amounted to approximately 220,000 employees.

According to Iger, layoffs are part of Disney's plan to achieve about $5.5 billion in cost savings, of which $2.5 billion will come from "non-content costs" including labor expenses. The company also states that $1 billion of these targeted cost reductions are already in progress.

Speaking to analysts, Disney CFO Christine McCarthy said that of the $2.5 billion in non-content expenses, approximately 50% is related to marketing spending, 30% represents labor costs, and the remaining 20% is related to technology, procurement, and other expenses. Disney anticipates these cost savings to fully take effect by the close of the fiscal year 2024.

Iger shared that cutting jobs was a difficult decision for the company and that he has "enormous respect and appreciation for the dedication of our employees worldwide."

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