Disney (DIS) has reportedly begun its third and final round of layoffs this week as the company looks to eliminate 7,000 jobs by the summer.
According to Deadline, the cuts will affect more than 2,500 jobs across the company. Parks and Resorts remains mostly untouched by the television division as well, largely unheard of, the outlet noted.
Disney did not immediately respond to a request for comment from Yahoo Finance.
Analysts are worried about near-term uncertainties surrounding the company, such as linear network declines, direct-to-consumer hurdles, and slowing park business. Adding to the challenges is an ongoing writers’ strike that has shut down production across the industry. Disney shares are up a modest 3% year-to-date, compared to the S&P’s (GSPC) gain of nearly 10%.
The media giant previously announced an effort to cut 7,000 jobs in February as part of wider cost-cutting and restructuring plans. The company went through its first round of layoffs in late March. Its second and biggest round took place at the end of April.
Disney stock sees biggest drop in six months after Disney+ reports 4 million subscribers in its second fiscal quarter after the recent price hike.
Streaming losses narrowed to $659 million in the quarter — above consensus estimates of $850 million — from a loss of $887 million in the year-ago period. The company reported a streaming loss of $1.1 billion in Q1 and a loss of $1.5 billion in Q4.
Disney reiterated plans to cut costs by $5.5 billion, which would include $3 billion in content costs. The company confirmed on its latest earnings call that it will take a content impairment charge of between $1.5 billion and $1.8 billion amid plans to remove several series and specials from both Disney+ and Hulu.
Deadline reported late last week that several titles, including “Willow,” “Big Shot” and “The Mighty Ducks: Game Changers” from Disney+. Hulu, along with “Dollface” and “Y: The Last Man,” will be removed from their respective services on May 26.
Also last week, the media giant canceled plans to relocate thousands of California-based employees to the state of Florida and build a new campus in the Lake Nona area of Orlando. The news comes amid the company’s ongoing dispute with Florida Governor Ron DeSantis.
In an interview at JPMorgan’s Global Technology, Media and Communications Conference on Monday, Josh D’Amaro, president of Disney Parks, Experiences and Products, reiterated comments he made to employees, adding that the decision stems from a change in leadership and business conditions. Stems and said the company still plans to invest $17 billion in Walt Disney World over the next 10 years.
D’Amaro said the DeSantis fight “has not impacted our business results,” citing the continued strong performance of the theme parks division, which saw operating income of $2.17 billion in the quarter.
“We’re thinking very aggressively about where we can take things in Florida,” he continued. “I’m excited about what’s in store.”
Disney CEO Robert Iger arrives at the Save the Children “Centennial Celebration: Once in a Lifetime” event at the Beverly Hilton Hotel on Wednesday, October 2, 2019, in Beverly Hills, California. (Photo by Jordan Strauss/Invision/AP)
Alexandra Canal is a senior reporter at Yahoo Finance. follow him on twitter @allie_canal, linkedin, and email her at [email protected]
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