Walt Disney begins process of cutting 7,000 jobs

Walt Disney Co on Monday began the 7,000 layoff exercise announced earlier in 2023, as it seeks to control costs and create a more "streamlined" business, according to a letter chief executive officer Bob Iger sent to employees and seen by Reuters.

Several major divisions of the company Disney Entertainment, Disney Parks, Experiences and Products, and corporate will be impacted, according to a person familiar with the matter.

ESPN is not touched by this week's round of cuts, but is anticipated to be included in later rounds.

The entertainment industry has undergone a retrenchment since its early euphoric embrace of video streaming, when established media companies lost billions as they launched competitors to Netflix.

They started to rein in spending when Netflix posted its first loss of subscribers in a decade in early 2022, and Wall Street began prioritising profitability over subscriber growth.

Mr Iger said Disney would begin notifying the first group of employees who are impacted by the workforce reductions over the next four days.