The Walt Disney Company has begun its expected third round of job cuts, according to reports from Deadline and CNN. The layoffs come after two earlier workforce reductions this year.
Disney’s return-again CEO, Bob Iger, announced in February that the entertainment giant would cut 7,000 jobs in an effort to save $5.5 billion in costs. The cuts would come in three waves and be completed before the summer. The first round of cuts saw hundreds of staff let go, and the second round, in April, saw up to 4,000 jobs cut, including many at ESPN.
The third—and presumably final—round of major cuts will begin this week and are expected to affect about 2,500 positions, according to reports. We’ve reached out to Disney for comment and will update this post if we hear back.
Unlike the first two rounds of cuts, which saw some divisions hit harder than others, Deadline says the third round will see job cuts “across the board” at the company. However, the publication notes that Disney’s television division, which received the brunt of job cuts in the second wave of layoffs, will see only a small number of jobs go this round.
Parks and Resorts employees are also said to be spared in this round of cuts, though the future for some of them may remain uncertain. Last week, Disney announced it would shutter its Galactic Starcruiser Hotel, an immersive Star Wars-themed attraction at Walt Disney World near Orlando. The Starcruiser was designed as a very expensive premium experience for Star Wars fans. But at up to $5,000 for a two-night stay for a family of four, it had yet to find massive appeal in its first 18 months of life. The hotel will now close for good on September 30.
It’s been a rough time for Disney’s workforce as of late. Besides the reduction of 7,000 staff and the upcoming shuttering of the Galactic Starcruiser Hotel, Disney recently announced that it would cancel a planned $1 billion office complex in Orlando, which would have brought up to 2,000 relocated employees to the region. In a letter to employees (via MiceChat), Josh D’Amaro, chairman of Disney Parks, Experiences and Products, acknowledged that some employees had already relocated and the company would talk to them individually about their options.
And then, of course, many Disney writers are on strike along with the rest of Hollywood’s writers.
While it appears that this third round of job cuts will be the final significant round of cuts, Deadline’s sources say there may still be smaller cuts later this year.
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