Disney to Cut 7,000 Jobs in Response to Economic Uncertainty

(MENAFN) The Walt Disney Company has announced plans to cut 7,000 jobs, comprising 3.2% of its workforce, in a bid to save $5.5 billion in costs. The move comes as the US-based multinational entertainment conglomerate faces economic uncertainty, with more than a dozen companies in the tech sector also cutting jobs due to lower income, falling ad revenue, and fears of a recession.

Disney CEO, Robert Iger, stated that the company will begin the first of three phases of job cuts this week. The first group of impacted employees will be notified directly over the next four days. The second, larger round of notifications will occur in April with several thousand more staff reductions. The final round of notifications will commence before the beginning of summer to reach the 7,000-job target.

Disney's global workforce stood at approximately 220,000 as of October 1, 2019. The company's announcement of job cuts has sparked concern among employees and industry analysts who wonder if this is the beginning of a trend across the entertainment industry or just a response to the current economic climate.

The entertainment industry has been particularly hard hit by the COVID-19 pandemic, with theatre closures, production shutdowns, and a decrease in consumer spending. Disney has also faced challenges with the closure of its parks and resorts, which account for a significant portion of its revenue stream. Despite the challenges, the company has continued to invest in its streaming service, Disney+, which has seen significant growth in its subscriber base.

Iger, who returned to his position in November, has stated that the company's focus remains on its long-term success and growth. While the job cuts are a difficult decision, they are necessary to help the company weather the current economic climate and emerge stronger in the future.



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