Bob Iger Memo Outlines Sacking of 7,000 Disney Staff

Mickey Mouse poses in front of Sleeping Beauty Castle at Disneyland Park in Anaheim, Calif., on Aug. 27, 2019. (Joshua Sudock/Walt Disney World Resorts via Getty Images)

Disney will begin to lay off nearly 7,000  team members as early as this week, Disney’s CEO Bob Iger said in an email to staff on Monday.

Iger laid out his plan and reasons for laying off so many employees in an email memo obtained by IndieWire.

The layoffs—done in three stages—will begin this week for some, while other employees will be notified in the coming months in an effort to reduce payroll by the beginning of summer “to reach our 7,000-job target,” Iger explained.

Employees in every department and position will be affected by the decision.

“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,” Iger said.

Iger’s memo to staff follows an announcement made in early February about the need to cut 7,000 staff, about 3 percent of its global workforce, CCN reported. Disney had about 220,000 workers as of Oct. 1, of which some 166,000 were U.S. employees.

Disney Executive Chairman Bob Iger attends the Exclusive 100-Minute Sneak Peek of Peter Jackson's "The Beatles: Get Back" at El Capitan Theatre in Hollywood, Calif., on Nov. 18, 2021. (Charley Gallay/Getty Images for Disney)

The staff cuts are part of a larger plan to create $5.5 billion in cost savings at the company and improve its financials.

One of ESPN’s biggest faces, “First Take” host Stephen A. Smith, speculated the cuts could affect the sports world.

“Disney itself announced that over 7,000 employees are going to be let go. ESPN is under the Disney umbrella. They’re going to have cuts coming. Hell, for all I know, I might be one of them. Now, I doubt that. But it’s possible. No one knows,” Mr. Smith said, according to Front Office Sports.

TV personality Stephen A. Smith speaks on radio row ahead of Super Bowl LVII at the Phoenix Convention Center in Phoenix, Ariz., on Feb. 9, 2023. (Mike Lawrie/Getty Images)

Despite Smith’s worry, Iger tried to reassure Disney employees about the company’s future in his memo.

“For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this time,” he said.

The CEO thanked his thousands of Disney team members and reminded them of how special it is to be a part of the Disney Company.

“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,” said Iger, who reclaimed his position as CEO last November after he took over for then-CEO Bob Chapek, who stepped down.

Visitors to Disneyland Park are seen in Anaheim, Calif., on Feb. 25, 2020. (David McNew/Getty Images)

‘Strategic Restructuring’

Disney’s move comes as the company has been financially struggling, leading to its execs scrambling for solutions. Execs have had to adjust for falling streaming revenue and rising costs for its theme parks.

“After a solid first quarter, we are embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises,” Iger said in response to the company’s first quarter reported earnings.

The returned CEO is aiming to make improvements within the company and split it into three different sectors—Entertainment, ESPN, and Parks, replacing the previous structure set by Chapek.

“I am committed to positioning this company for a new era of growth. Our strategic restructuring will return creativity to the center of the company, increase accountability, improve results, and ensure the quality of our content and experiences,” Iger said on Feb. 9.

The Epoch Times reached out to Disney for comment.