The cuts will represent 3% of the company’s global workforce.
Disney will begin laying off 7,000 employees this week, according to an email CEO Bob Iger sent to employees.
In February, several media outlets reported that Iger plans to lay off 7,000 employees with the goal of cutting $5.5 million in costs, after returning as Disney CEO.
The second round of layoffs will take place in April, while the third will happen before the beginning of the summer.
The cuts will be to the company’s global workforce. According to CNN Business, last October the company had about 220,000 employees, of which approximately 166,000 were employed in the US. The 7,000 jobs represent 3% of Disney’s entire workforce.
The cuts go hand in hand with a restructuring of the company. Disney will have three divisions: Disney Entertainment, which will be in charge of media and streaming operations; ESPN division, which includes the TV network and the ESPN+ streaming service; and the Parks, Experiences, and Products division.
Is not clear how the cuts will affect Florida employees but they are not expected to affect hourly frontline employees at Disney’s theme parks, according to an email Disney Parks Chairman Josh D’Amaro sent to employees in February.
Metaverse, Disney’s next-generation storytelling and consumer experiences division, apparently was one of the first affected. The team of around 50 employees was eliminated on Tuesday, according to The Wall Street Journal.
The Journal said Disney shares fell 0.3% to $95.34 during Tuesday morning trading.