Disney starts fresh round of job cuts worldwide; Indian operations likely to shrink

Entertainment giant, Walt Disney, is set for a fresh round of layoffs. Thousands of employees, including those in the entertainment division, corporate responsibilities, and staff throughout every Disney operational region are expected to be impacted by the cuts. The company is likely to inform impacted employees about the job cuts by April 24, reports said. Globally Disney is likley to downsize its workforce by 3%.

Disney announced 7,000 job cutbacks earlier in February as part of its efforts to reduce its expenses by $5.5 billion as per a report by Associated Press. Disney’s CEO Bob Iger  has dubbed it as part of a “significant transformation”, AP reported.

The job layoffs became public on February 8 after Bob Iger issued memos to Disney employees about the downsizing drive.

It is anticipated that virtually every Disney Entertainment division, including TV networks, studios, and film studios, will witness substantial impact. In its most recent financial reports, Disney was able to offset mediocre performance in its video streaming and movie businesses with strong growth in its theme parks. 

According to reports, the theme park staff received a memo in February from Josh D'Amaro, chair of Disney Parks, Experiences and Products, notifying them of impending job cuts.

However, "guest-facing" services at Walt Disney World Resorts in Orlando, Florida are not anticipated to be impacted by the layoffs, according to representatives of two of the unions that represent cast members.

Layoffs In India

The Disney India offices are also likely to witne significant downsizing of staff in tune with the company's global policy to tighten its operations.

Silicon Valley Layoffs

Walt Disney's layoffs come close on the heels of a series of tech job cuts.Silicon Valley behemoth, Google in Jnauary has announced 12,000 job cuts. Similarly, Microsoft, Amazon, Facebook parent company Meta, and other tech companies too have implemented significant cuts. Some 48,000 jobs have been reportedly cut down only in January, worldwide. 

Global Recession and its impact

The Russia-Ukraine war, the ongoing inflation worldwide, a slowing growth of global GDP are some of the reasons for which tech and tech-driven companies are at this time taking a conservative look at their operations. Multiple Indian companies which are dependent on a global clientele too are dealing with the impact of the global market movements.

(With agency inputs)