(USNewsMag.com) – Another round of layoffs is beginning at Disney. This latest round, the third since March, is estimated to be about 2,500 jobs. The latest round brings the layoff total to 6,500 jobs lost and is expected to be the last round before summer.
Before the first round of layoffs in March, Disney CEO Bob Iger said the company would be cutting about 7,000 jobs, or 3 percent of the total global workforce. The move is said to be saving the company an expected $5.5 billion. The layoffs account for 30 percent of the $5.5 billion, with 50 percent savings coming from marketing operations and the remaining 20 percent in savings coming from decreased spending on technology, procurement, as well as other expenses.
The local International Alliance Of Theatrical Stage Employees Union President Paul Cox stated union represented workers were not impacted.
The March and April layoffs, about 4,000 jobs, included job losses at Disney’s entertainment division, ESPN, Disney’s Experiences and Product division as well as Disney Parks. This latest round of layoffs is not focused on a particular division, though it includes a small number in the hard-hit TV division. The division of Parks and Resorts remains mostly untouched by the layoffs.
Disney had about 220,000 employees as of Oct. 1, 2022.
As part of its cost saving measures, Disney has also begun removing popular titles from its streaming service, Disney+.
Disney is also scrapping its plans to build a $900 million corporate campus in Florida. The move would have included moving about 2,000 employees from California to Florida. Disney scrapped the plan in part because of money, as well as Iger returning as CEO and the ongoing battle between the company and Florida Gov. Ron DeSantis.
The move by Disney comes as the Writer’s Guild strike continues for a fourth week. The strike has stopped production as well as the development of movies and TV shows. The move also comes as companies, including tech companies Amazon and Meta, have been preparing for a possible recession.
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