Anxieties are high across The Walt Disney Company this week as employees brace for the second of three layoff rounds announced by returned CEO Bob Iger in February. Now, Deadline reports that the penultimate cull, referred to as the “big one” or a “bloodbath,” will begin Monday, April 24, and see firings across Disney’s film and TV divisions every day through Thursday, April 27.
As previously reported, Iger outlined a company-wide restructuring plan that aims for $5.5 billion in cost cuts ($3 billion in non-sports content and $2.5B in operating costs). CFO Christine McCarthy detailed the cuts at 50% marketing, 30% labor and 20% technology, procurement and other expenses.
The company anticipated axing 7,000 employees, which began just ahead of the shareholder meeting on April 3 with the consolidation of production operations across Disney Television Studios, Hulu, Freeform and FX and shutdown of the Creative Acquisitions department and a small metaverse division. This round, the expanse of Disney Entertainment business, including networks and TV/film studios, is expected to see a flurry of pink slips.
Disney Television Animation falls under Disney Ent. via Disney Branded Television; the Disney and Pixar feature animation studios are part of the Walt Disney Studios division. Hopefully, these hitmaker studios will be offered some protection, as Iger told CNBC’s Squawk on the Street earlier this year that “animation will continue to be an important business for [Disney] for a long time.”
Network programming and studio marketing departments are expected to be targeted. Hulu, which Disney took full operational control of in 2019 (Comcast retains a 33% financial stake) is also ripe for streamlining, an outside media executive told Deadline, positing that the company could opt to fold the streamer into Disney+, or drop it outright rather than face a $9 billion buy out in 2024.
