According to a memo from Disney CEO Bob Iger, The Walt Disney Company will begin its first round of layoffs this week. The layoffs were originally announced by then-CEO Bob Chapek and approved of and will be enacted by current CEO Bob Iger.
Iger said in the memo that the company is looking to create a “streamlined approach” to their business and that the layoffs would help them reach their goal of cutting 7000 jobs before summer. He also said that there would be three rounds of cuts, with the first beginning this week.
The news comes as no surprise as Disney has been "struggling" financially due to the pandemic. The company reported losses of over $4 billion in 2020 and has seen a drop in revenue from its movie theaters, and cruise lines.
The layoffs are expected to affect employees across all divisions of the company including film production, television production, theme parks, cruises, retail stores, and more. Many companies have had to layoff or furlough employees due to economic uncertainty caused by the pandemic.