It is a sad situation for many employees of the Walt Disney Company. Through no fault of their own, many will be losing their jobs as layoffs hit the happiest company on Earth.
When Disney was “reimagining tomorrow,” it probably didn’t look like this. Instead of being a place where everyone belongs, Disney is kicking at least 3% of its workforce out of their stations. It may be just the beginning. While we’ve known about the 7,000 jobs for a while, sources both public and private have informed us that the number may increase for the summer and fall. The memo from Robert Iger may point to the same. The newly restored CEO at the company is facing a maelstrom of problems and we may not have even come close to bottom just yet.
Here’s the memo from Iger himself:
Dear Fellow Employees,
As I shared with you in February, we have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more effective, coordinated and streamlined approach to our business. Over the past few months, senior leaders have been working closely with HR to assess their operational needs, and I want to give you an update on those efforts.
This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions. Leaders will be communicating the news directly to the first group of impacted employees over the next four days. A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to commence the final round of notifications before the beginning of the summer to reach our 7,000-job target.
The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company.
For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this time.
In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future. Please know that our HR partners and leaders are committed to creating a supportive and smooth process every step of the way.
I want to thank each of you again for all your many achievements here at The Walt Disney Company.
Sincerely,
Bob
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How bad does it need to get before Iger just gives in and pulls in Nelson Peltz to take over?
Much worse. The bottom is not yet in site. Let’s see how Disney does at the box office by the end of this year.
They said they didn’t want Peltz because he didn’t understand the Disney business. It is clear at this point that not one person on the board or the C Suite understands Disney’s business. Need anther shareholder revolt to replace them all. Where is the next Roy O. Disney?
The Disney Business is creating wholesome age-appropriate family entertainment that parents can trust.
Whether it’s movies, theme parks, or cruises, that’s it in a nutshell.
Do you think anyone there still understands this?
The downfall can be traced to the firing of Gina Carano. People were really, really shocked, confused, and pissed that this could happen in America. America means freedom to people, free expression of personal political ideas without fear of having your livelihood taken away. It struck a nerve. Though we had Captain Marvel on the MCU side already, the cancelling of Gina was the proximate cause of financial loss for Disney.
Ever. Since. Gina. (the real ESG they should actually be paying attention to).
If Disney were to make a FULL meaculpa, admit what they did was wrong, promise not to do it again..and do this in an effort to win back “our” trust…they can recover.
I look forward to the day when I enjoy Disney content more than I enjoy the reporting about the failures of Disney. Thanks for good reporting and great content.
Surely there’s a course correction on the way.