Disney Begins Laying Off 7,000 Employees

New Delhi: Disney has announced that the first of three rounds of cuts will result in about 7,000 job losses. Disney’s media and distribution division, parks and resorts and ESPN will be impacted by the three rounds of layoffs.

In a memo to staff obtained by CNN, Iger said the layoffs would come in three waves. The first round will begin this week, and managers will soon start to notify affected employees. A second, larger round of layoffs will take place in April, Iger said, with several thousand staffers let go. A third round of layoffs will then occur “before the beginning of the summer” to reach the company’s planned goal of eliminating 7,000 jobs.

Disney claims that the job cuts will help the company cut $5.5 billion in costs, including $3 billion in content spend.

Disney (DIS) had about 220,000 workers as of October 1, of which approximately 166,000 were employed in the United States. A cut of 7,000 jobs represents about 3% of its global workforce.

The layoffs follow Iger’s return to Disney in November after the company’s board fired Bob Chapek as its leader.