After announcing a plan to cut nearly 7,000 jobs, Disney would instruct managers to propose budget cuts and draw up lists of employees to be laid off in the coming weeks.
It’s unclear whether Disney will begin layoffs in small waves or lay off thousands of employees all at once, but the company will announce that at least 4,000 current employees will be out of work 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 reducing payroll.
Disney did not immediately respond to a request for comment.
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According to Disney Chief Financial Officer Christine McCarthy, the redesign is expected to save $5.5 billion, cutting operating costs by $1.5 billion and another $3 billion from reducing the non-sports content.
The entertainment giant also said it would step back from general adult entertainment and is weighing options for what to do with Hulu, the streaming service specializing in general entertainment shows and two-thirds owned by Disney, one-third held. by Comcast Corp.
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Under the terms of Disney’s 2019 purchase of its share of Hulu, each party has the right to force the sale of the company starting early next year.
The planned job cuts were announced ahead of Disney’s annual meeting on April 3. On Thursday, the shareholder activist at the National Legal and Policy Center called on investors to object to the entire slate of board nominees at the meeting, arguing they were “reports “. who presided over 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 ‘with the pursuit of a far-left political agenda’, saying the company must drop the ‘revival’ to regain its corporate reputation family. They pointed to Disney’s opposition to Florida’s Parental Rights in Education Act, wrongly labeled the bill “Don’t Say Gay” by critics, and Florida Governor Ron DeSantis’ denial as evidence. bad decisions to be involved in politics harming the business.
FOX Business’ Robbie Whelan contributed to this report.