Disney CEO Bob Iger has announced the beginning of the first round of layoffs this week as part of a major restructuring plan that will affect up to 7,000 employees.

In an internal memo obtained by TechCrunch, Iger revealed that there would be three rounds of layoffs, with the first impacting the media and distribution segment, ESPN, and the parks and resorts division. The second round will take place in April, affecting several thousand more staff, with the final round expected to commence before the summer.

Despite the job cuts, Iger has asked for employees’ understanding and collaboration as the company builds structures and functions to succeed moving forward. The restructuring plan includes cutting costs of $5.5 billion, including $3 billion in content spend. Iger has also admitted to being “open-minded” about the sale of Hulu, which Comcast partially owns.

As media companies continue to face losses in the current market, many adopt the same strategy as Disney. However, with its streaming business (Disney+, Hulu, and ESPN+) expected to become profitable in late 2024, Disney is still confident in its future success.

Manish