Disney begins the second round of 7,000 planned job cuts — targeting ESPN, theme parks, entertainment, and more
- Disney began its second round of job cuts on Monday.
- The layoffs will total 7,000 among three rounds.
Disney is starting the second round of its planned cuts on Monday, with divisions like ESPN getting hit, the company confirmed to Insider.
The layoffs are part of 7,000 roles that will be eliminated this year, as Insider previously reported. Disney told The Wall Street Journal that several thousand employees would lose their jobs this week at divisions across the company, spanning from entertainment to theme parks. Disney does not expect hourly frontline operations roles at its parks and resorts to be impacted, the company told Insider.
Disney Chief Financial Officer Christine McCarthy told investors on the company's last earnings call that Disney had targeted cost savings of $5.5 billion.
These cuts are part of CEO Bob Iger's plan to reorganize the company, make its streaming business profitable, and undo some of the changes put in place by his predecessor (and one-time heir) Bob Chapek.
Insider's Claire Atkinson recently reported that, since Iger's return late last year, he has taken on a series of internal and external foes. He has battled Gov. Ron DeSantis and dealt with a proxy fight, all while cutting data-driven execs installed by Chapek in a move Disney insiders have dubbed "Revenge of the Creatives."
These new cuts, however, will span far beyond the perceived missteps of Chapek, and show the depth of change needed at Disney to adapt to the reality of slowing streaming growth and a shaky economy.
"When [Iger] was last at the helm, money was practically free," Mike Bloxham, EVP global media and entertainment at consultants Magid, previously told Insider. "He did very well for his company in that era. That time is now gone. Even if he wants to be the Bob Iger of old he can't be. If wants to succeed, he's got to retool the organization. That means he's got to cut costs. He's nasty Bob instead of nice Bob."
Disney said its first two rounds of layoffs will total 4,000, and that it expects the third round to be the final one.
The company also created a new finance team pulling together staff from Disney Entertainment and ESPN, Insider reported Friday.
This post has been updated with new information from Disney.