After announcing a plan to cut nearly 7,000 jobs, Disney is reportedly instructing managers to propose budget cuts and prepare lists of employees to be laid off in the coming weeks.
It’s unclear whether Disney will begin laying off in small waves or cut thousands of employees all at once, but the company will announce at least 4,000 current employees sometime in April, according to Business Insider.
The pay cuts were announced by CEO Bob Iger during the company’s first-quarter earnings call in February, as Disney seeks to save billions of dollars by restructuring the company, cutting content and cutting payroll.
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Disney did not immediately respond to a request for comment.
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According to Disney Chief Financial Officer Christine McCarthy, the overhaul is expected to save $5.5 billion, save $1.5 billion in operating costs and save an additional $3 billion on non-sports content.
The entertainment giant also said it would back away from general entertainment aimed at adults, and is evaluating options for what to do with Hulu, the streaming service that specializes in general entertainment shows and is owned 2/3 by Disney and 1/3 by Comcast Corp.
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Under the terms of Disney’s purchase of its share of Hulu in 2019, either party has the right to force a sale of the company early next year.
The planned job cuts were announced ahead of Disney’s annual meeting on April 3. On Thursday, the activist shareholder, the National Legal and Policy Center, called on investors to oppose the slew of nominees for the board of directors at the meeting, arguing they are “transfers.” that was the chairman of the entertainment giant’s worst year since the 1970s.”
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The group accused the company of losing money by damaging its brand “in pursuit of a far-left political agenda,” and said the company must give up the “wake up” to restore its reputation as a family-friendly company. They pointed to Disney’s opposition to Florida’s Parental Rights in Education law, misleadingly labeled the “Don’t Say Gay” law by opponents, and pushback from Florida Gov. Ron DeSantis as evidence of bad decisions to get involved in politics that harm the company.
Robbie Whelan of FOX Business contributed to this report.
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