Disney job cuts to include 4,000 layoffs
The Walt Disney Co. plans to lay off about 4,000 people company-wide as part of the 7,000 job cuts CEO Bob Iger announced in February, according to a report by Business Insider.
Managers have been asked to identify layoff candidates by April, an unidentified person with knowledge of Disney’s decision told the publication. The same individual said the remaining 3,000 cuts will come from open positions that will be eliminated, Business Insider reported.
It is unclear how many of Disney’s jobs in Florida could be affected by the cuts.
State records show Disney has not filed any mass layoff notices with the Florida Department of Economic Opportunity as of Monday. Federal law requires companies to file notices 60 days in advance of layoffs affecting 50 or more workers.
Disney Parks, Experiences and Products Chairman Josh D’Amaro said in February he did not expect the job cuts to affect workers in hourly frontline roles at Disney’s theme parks. Iger has praised the performance of Disney’s theme parks in recent quarters, saying “demand on the parks is extraordinary right now.”
Eric Clinton, a union president at Walt Disney World, said the resort’s service workers will not be laid off because their positions are protected by the union coalition’s contract with Disney.
“You don’t save the company money by cutting your lowest-paid workers,” he said in February, adding Disney was still hiring hundreds of workers into frontline jobs weekly. Disney World’s minimum wage starts at $15 an hour.
The downsizing comes as part of Disney’s efforts to slice a total of $5.5 billion in costs. Labor cuts are about 30% of Disney’s cost-reduction plan, CFO Christine McCarthy said last month.
Disney declined to comment to Business Insider on the development. Local Disney representatives did not immediately respond to the Orlando Sentinel’s request for comment.
Initial news of the company’s layoffs came as executives announced they were restructuring Disney into three core business segments — Disney Entertainment, ESPN and Disney Parks, Experiences and Products — as part of overhauling its streaming business.