Walt Disney Co (DIS) has begun laying off 7,000 employees in a restructuring move announced earlier this year aimed at controlling costs and creating a more "streamlined" business, according to a report.
A Reuters report citing a company source said that the downsizing will affect some of the company's major divisions including Disney Entertainment, Disney Parks, and the corporate office.
Although ESPN is not touched by this round of cuts later rounds may impact it.
Widespread layoffs in the media industry began after Netflix, which experienced huge growth during the COVID-19 lockdown, set off a series of staff cuts, following the first loss of subscribers in nearly a decade in early 2022.
Walt Disney Chief Executive Bob Iger told company employees that Disney would begin notifying the first group of employees impacted by the workforce reductions over the next week. A second, larger round of job cuts will happen later in April, "with several thousand more staff reductions." The final round will start before the beginning of the summer, the letter said, according to Reuters.
In February, the Burbank, California-based entertainment conglomerate announced its plan to eliminate 7,000 jobs to save $5.5 billion in costs and make its money-losing streaming business profitable.
One of the first areas targeted for cuts was television production and acquisition departments, resulting in the departure of senior executives, a source confirmed.