According to a report from Fox News (via Business Insider), team leaders have been asked to propose budget cuts and identify a list of employees to be laid off in the coming weeks. The report also said it is unclear whether these employees will be laid off in small waves or all at once.
Reportedly, the remaining 3,000 cuts are expected to come from open positions.
Disney job cuts and restructuring
Disney joined the long list of tech companies such as Amazon, Meta, Google and Microsoft, among others, to announce layoffs. Back in February, the company’s CEO described the job cuts as an effort to cut $5.5 billion in costs and make its streaming business profitable. The 7,000 layoffs represent an estimated 3.6% of Disney’s global workforce.
Disney plans to return power to creative executives and restructure itself into three segments: an entertainment unit (which includes movies, TV and streaming), a sports-focused ESPN unit and Disney parks, experiences and other products. However, he said the streaming business is Disney’s top priority.
The CEO also said the reorganization will result in a “more cost-effective, coordinated approach” to Disney’s operations.
Disney CTO resigns
The development comes a few weeks after Disney’s Chief Technical Officer (CTO) Jeremy Doig reportedly left the company. Bloomberg reported that Doig oversaw the teams that run streaming services such as Disney+, Hulu and ESPN+.
In the note, Mike Hanleysenior vice president of engineering for Disney’s OTT platforms, wrote: “I have been informed that Jeremy Doig is no longer with the company effective immediately.”