Disney has allegedly directed its managers to propose budget cuts and compile lists of employees to be laid off, following its announcement to cut approximately 7,000 jobs.
Disney will announce layoffs of at least 4,000 employees in April, but it is unclear whether they will occur in stages or all at once, reported Business Insider.
During Disney's Q1 earnings call in February, CEO Bob Iger announced the company's plan to save billions of dollars by restructuring, reducing content, and cutting payroll, including the recent payroll cuts.
The company’s CFO Christine McCarthy anticipates that the restructuring will save $5.5 billion, comprising $1.5 billion in operational expenses and $3 billion from non-sports content reductions.
Disney has announced its intention to reduce its production of adult-oriented content and is exploring potential courses of action for its streaming service, Hulu. Disney owns two-thirds of Hulu, with Comcast Corp. owning the remaining third.
Starting next year, either party has the right to demand the sale of Hulu under the conditions of Disney's 2019 acquisition of its share.
The announcement of the job cuts occurred before Disney's upcoming annual meeting on April 3rd. The National Legal and Policy Center, an activist shareholder, has urged investors to reject all board of director nominees, claiming that they presided over Disney's worst year since the 1970s.
The organisation alleged that Disney's endorsement of a "far-left political agenda" has negatively affected the company's brand and resulted in financial losses. They urged Disney to abandon "wokeness" and restore its reputation as a family-friendly brand.
Their argument cited Disney's stance against Florida's Parental Rights in Education law, which critics dubbed the "Don't Say Gay" bill, and the company's political involvement, which they believe harmed its brand. They cited pushback from Florida Governor Ron DeSantis as proof of such damaging political involvement.