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Credit: Inside the MagicWhen Bob Iger returned as CEO of The Walt Disney Company in November 2022, the company was in a very precarious position. Bob Chapek had failed in less than three years as CEO — the stock price was terrible, cast members were miserable, Disney+ was losing billions of dollars, and the company was struggling with its reputation.
When he returned, Iger knew that he had to get the company back on good reputational and financial footing. He announced that more than 7,000 positions would be cut in an attempt to save $5.5 billion.
Related: Bob Iger Gets Massive Pay Bump As Disney Leadership Sees Big Shake-Ups
Bob Iger made the job cuts announcement in February 2023, and the first round began just one month later. Massive layoffs occurred in March, April, and May 2023.
However, those were not the only layoffs that the company faced. One year later, Pixar Animation Studios was forced to cut approximately 14% of its total workforce. Then, in July, Disney Entertainment Television laid off about 140 people, or two percent of its workforce. September 2024 saw around 300 corporate employees lose their jobs.
In March of this year, ABC and Disney Entertainment were “gutted” when nearly 200 employees were let go.
Related: Bob Iger Takes Grotesque $31 Million Salary While Disney Announces Mass Layoffs
Sadly, even more Disney employees have now found themselves in the unemployment line as Disney continues to try to cut costs.
According to The Hollywood Reporter:
The impacted teams are employees working on marketing for both film and television, as well as TV publicity, casting and development and corporate financial operations, a source familiar with the matter confirms to The Hollywood Reporter. While individual employees from those teams are impacted, and were notified Monday, no team itself is being eliminated, the source said.
This is part of Disney’s ongoing efficiency and cost-cutting measures, which were outlined in September, as it refocuses on streaming and pushes for profitability. The Burbank-based company employs 233,000 people globally and 171,000 in the U.S., per its most recent annual report.
Related: What the Heck Happened to Bob Iger?!
The layoffs come at a time when Disney continues to exceed Wall Street’s expectations, which can seem a little disappointing. Hundreds of people are losing their jobs, while Disney made a profit of more than $3 billion in the last quarter alone.
Disney has not confirmed if more layoffs are slated for the near future.
Do you think mass layoffs are a good way for Disney to cut costs, or is there a better way? Should Disney executives take a pay cut, so more people can keep their jobs? Do you think it’s wrong of Disney to lay people off when it is makes billions in revenue? Share your thoughts in the comments.