In tough moments, we must always do what is required: Disney CEO

After tech giants, Retrenchment is about to begin at Walt Disney company. Earlier this year, it announced layoffs of 7,000 employees. According to Walt Disney Chief Executive Bob Iger, the company took the decision to control costs and create a more streamlined business.

Reportedly, Bob Iger wrote, "The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company."

“In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future. Please know that our HR partners and leaders are committed to creating a supportive and smooth process every step of the way,” said the Disney CEO.

The layoffs will affect some of the company's key divisions, such as Disney Entertainment, Disney Parks, Experiences & Products, and Corporate. The layoffs at the company began on Monday and have not yet affected ESPN, but the possibility of layoffs in the next round cannot be ruled out.

According to the chief executive of the company, information is being sent to all the employees who are to be retrenched in the next four days. After this, the second round of retrenchment will take place in April itself. The second round of layoffs will be larger than the first, which means more workers will be laid off.

The company has not disclosed when the layoffs will take place, but media reports have cited sources as saying it could happen before the company's annual meeting of shareholders on April 3. In a letter to employees, Bob Iger wrote that the final round of layoffs will begin before the summer begins.

Disney announced 7,000 layoffs in February. The company has taken this decision to save $550 million (Rs 45.2 thousand crore) in costs and make the streaming business profitable. The entertainment industry is currently going through a deep crisis.

Notably, This is not only happening with Disney, but also with Netflix. Last year in 2022, Netflix posted its first loss in ten years. Wall Street began prioritizing profits over subscriber growth, adding to the woes of video streaming companies.