The Walt Disney Company Confirms Layoffs Impacting 7,000 Employees

As expected by many ahead of the company's Q1 2023 investor relations call, The Walt Disney Company is set to undergo layoffs over the next year. Disney CEO Bob Iger confirmed the news on the company's call, revealing that the company is looking to cut costs and will reduce their global workforce by 7,000 total employees, just over 3% of their entire employment. According to Iger, the layoffs are part the company's measures to save over $5.5 billion in costs, which will also include other measures.

"This reorganization will result in a more cost effective, coordinated and streamlined approach to our operations," Iger said. "We are committed to running our businesses more efficiently, especially in a challenging economic environment. In that regard, we are targeting $5.5 billion in cost savings across the company. First, reductions to our non content costs, in total roughly $2.5 billion not adjusted for inflation. To help achieve this, we'll be reducing our workforce by approximately 7,000 jobs. While this is necessary to address the challenges we're facing today. I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide. I'm mindful of the personal impact of these changes."

It was reported back in November that Disney was already looking to undergo layoffs, with former CEO Bob Chapek confirming it in a memo to staff. These new details from Iger, who succeeded Chapek and take back his former position at the company, confirm the extensive cuts that the company will be making. All of this is happening in tandem as Disney looks to celebrate its 100th anniversary as a company.

The major layoffs weren't the only thing confirmed on the call, with Iger also revealing that work is underway on new movies in the Toy Story, Frozen, and Zootopia franchises; while also confirming how they've restructured their entertainment division. In short, things are changing fast at The Walt Disney Company.