As part of CEO Bob Iger’s $5.5 billion budget cut proposal, the world’s largest entertainment company Disney is expected to axe up to 4,000 jobs. The move comes as Disney struggles with a string of box office failures, enormous losses from its streaming service, and political setbacks as a result of its radical left-wing policies in Florida.
Executives have reportedly given managers the assignment of determining which of their staff qualify as “redundant and disposable” and instructed them to have their lists prepared within the next two weeks.
Although it is unknown if the layoffs would occur in waves or all at once, insiders have revealed that the first ones will begin in April.
There may be more to come after the 4,000 layoffs. Iger reportedly wanted to eliminate 7,000 employees, or more than 3% of the workforce, in February.
Some of the job cuts will affect open positions that will later be officially eliminated.
Despite the company’s $23.51 billion in profits—a little higher than expected at $23.44 billion, the layoffs are still planned.
Also, it was stated that the company is cutting back on its investments in brand-new programming, marketing campaigns, and owned businesses like ESPN and other entertainment divisions.
Disney, like a large portion of the rest of the entertainment sector, has been negatively impacted by the collapse of the advertising market as businesses cut back on advertising as a result of rising inflation.
Disney’s financial concerns are related to the company’s growing acceptance of the radical woke agenda, transgenderism, and critical race theory, particularly in its child content. The Disney+ streaming channel series The Proud Family: Louder and Prouder, which recently claimed that America was founded on “white supremacy” and “still has not atoned” for its racism, recently sparked controversy by promoting reparations for slavery.
All of these pressures are made worse by ongoing box office letdowns, when woke films like Lightyear, Enchanto, Mulan, Strange World, and others fell short of audience expectations. In addition, its much-hyped streaming service continues to lose money.
The firm has also lost a number of political skirmishes in Florida, the state that is home to its Disney World theme park, after seeking and failing to persuade Florida to permit young schoolchildren to be exposed to radical gender politics by challenging the state’s recent education regulations and losing its unique taxation and self-governing status.
Yet, Disney is not the only company that has fired employees from the entertainment sector. Netflix, Paramount, and Warner Bros. Discovery have already experienced layoffs.