On April 24, Disney began the second round of layoffs to cut around 7,000 jobs aiming to cut costs and save USD 5.5 billion. The company has cut about 4,000 jobs in the latest round of layoffs, and the process will continue for a couple of days. It is pertinent to note that Disney C.E.O. Bob Iger announced the decision to layoff earlier in February.
It is reported that the company will cut jobs across its different business segments, such as Disney Entertainment, ESPN and Disney Parks, and Experiences and Products. However, the company has claimed they would not layoff hourly frontline workers at parks and resorts.
Disney’s layoffs are being done to re-organise and restructure the company, streamline the business, and the layoffs would help the decision-making of Disney’s executives.
The President of ESPN, Jimmy Pitaro, sent a memo to all employees stating that those going to be affected by the layoffs will hear from their supervisors or the company’s human relations department this week.
“As we advance as a core segment of Disney, with operational control and financial responsibility, we must further identify ways to be efficient and nimble. We will continue to focus our workforce on initiatives that are most closely aligned with our critical priorities and emphasise decision-making and responsibility deeper into the organisation,” Jimmy Pitaro said in the memo.
A similar memo was shared by Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden, “We recognise that it has been a period of uncertainty and thank you all for your understanding and patience.”
On March 27, Disney began notifying employees affected by the workforce reductions, with a larger round of layoffs expected to follow in April. A third round is scheduled before the start of summer. It is pertinent to note that even the Vice President of Communications, Mike Soltys, was shown the door after being with the company for 43 years. He confirmed his exit through social media.
Layoffs continue across companies
On April 21, one of the Big Four consulting giants, Deloitte, announced that the company plans to cut around 1200 jobs. Deloitte’s announcement came after another giant from the Big Four, Ernst and Young, announced cutting 3,000 jobs, citing overcapacity. Furthermore, in February, KPMG laid off about 2 per cent of their workforce in the United States.
It is pertinent to note that various companies have laid off significant workforce to restructure their organisations and cut down costs amid the recession, mainly attributed as an after-effect of the COVID pandemic. The layoffs have affected thousands around the world.
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Last month, Amazon C.E.O. Andy Jassy announced that the company would lay off 9,000 employees due to the uncertain economic landscape. Another tech giant, Meta, Facebook’s parent company, will cut down 10,000 jobs in the coming months for restructuring. In January, Google announced that it would layoff over 12,000 employees.
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Switzerland’s biggest bank, UBS, will likely cut 36,000 jobs after its merger with Credit Suisse. It is pertinent to note that Credit Suisse announced to cut 9,000 jobs last year to save itself from further losses. Furthermore, JP Morgan is laying off 30 per cent of investment bankers in the Asia Pacific region.
Indeed.com‘s C.E.O. Chris Hyams announced the company would lay off 2,200 jobs. Logitech’s spokeswoman Nicole Kenyon announced that the company is cutting around 300 jobs. The SiriusXM C.E.O. Jennifer Witz announced a workforce reduction of 8 per cent, translating into 475 jobs.
The software company Atlassian plans to lay off 500 employees, translating into a 5 per cent workforce. The company’s layoffs are aimed at downsizing recruiting, programme management and research, and the savings would be reinvested in other departments.
Furthermore, Citigroup has announced 1 per cent of their total workforce. Despite the company’s expansion, Airbnb plans to reduce recruiting staff by 30 per cent. Vimeo C.E.O. intends to cut 11 per cent workforce.
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