The Walt Disney Company (DIS) is laying off 7,000 employees in three rounds of job cuts as the entertainment giant tries to streamline operations and lower costs.
In a memo to staff, Disney chief executive officer (CEO) Bob Iger said the first of three rounds of workforce reductions will begin before this summer.
Iger added that the cuts are part of a company-wide effort to reduce corporate spending and boost free cash flow.
Disney had previously announced plans to cut $5.5 billion U.S. in costs, including $3 billion U.S. in content spending on movies and television shows.
The layoffs are expected to be across the entire company, including Disney’s media division, parks and resorts, and the ESPN sports network.
Disney is following Warner Bros. Discovery (WBD) and other media companies that are cutting jobs and spending coming out of the COVID-19 pandemic.
Disney has said that its streaming unit should stop losing money in 2024.
Since returning as CEO late last year, Iger has reorganized the company and said he is considering selling the Hulu streaming platform.
Disney is scheduled to hold its annual shareholder meeting on April 3 of this year. The company’s stock has declined 31% over the last 12 months and currently trades at $95.62 U.S. per share.
