It has been announced that the Walt Disney Co. will cut thousands of jobs next week, which will include slashing around 15% of the staff in its entertainment division. As reported by Bloomberg, this comes as part of the company's efforts to reduce its workforce by roughly 7,000 employees across three rounds of layoffs.
The impact of these layoffs will be widespread, with job cuts expected to affect TV, film, theme parks, and even corporate positions. This announcement follows the first round of layoffs that were initiated last month, which saw the company eliminate its metaverse division and resulted in a total of 3,000 employees losing their jobs.
The Covid-19 pandemic has severely impacted the entertainment industry, with theme parks and movie theaters having to close down, and production for films and TV shows being put on hold or canceled altogether. Disney was not immune to these challenges and had to take drastic measures to keep the company afloat, including furloughing employees and cutting executive pay.
Despite being able to reopen its theme parks and resume production on its popular TV shows, it appears that Disney is still struggling to recover fully from the pandemic's effects. It is evident that Disney are determined to cut costs and reduce their workforce significantly.
The potential reasons for these layoffs may be varied, with some speculating that it is part of the company's efforts to pivot towards streaming and direct-to-consumer content. Disney+ has seen massive success since its launch, with the pandemic accelerating the shift towards digital entertainment consumption. With more consumers opting for streaming services, Disney may be looking to streamline its operations and focus its resources on its digital offerings.
Alternatively, the layoffs may simply be a reflection of the financial strain that the company is currently under. The pandemic has had a profound impact on the entertainment industry, and Disney, like many others, has had to make difficult decisions to stay afloat.
In any case, these layoffs will undoubtedly be a significant blow to employees, particularly those working in the entertainment division. It remains to be seen what the full extent of the impact will be and how it will affect Disney's plans for the future.