In an effort to cut costs, Disney had previously announced plans to lay off around 7,000 employees globally, which would save the company $5.5 billion. The first round of layoffs had already taken place in March, with the second round expected to be completed this week.
This time, the layoffs will primarily affect Disney’s subsidiaries, including ESPN, Disney Entertainment, and Disney Parks. According to CNBC, employees in California, New York, Connecticut, and other regions will be impacted, with camera-related departments being hit particularly hard.
Jimmy Pitaro, CEO of ESPN, acknowledged the impact of the layoffs in a message to employees, stating that “we need to find ways to become more efficient and nimble as we continue to grow as a core division of Disney.”
The company’s declining business can be attributed to the COVID-19 pandemic, which forced many of Disney’s theme parks and entertainment venues to close. Despite some parks reopening with limited capacity, the company’s revenue has still taken a significant hit. This has resulted in a series of cost-cutting measures, including layoffs and the suspension of dividend payments.