Key Points

• Disney has started its second round of layoffs
• Thousands of workers from different divisions will be let go this week
• Hourly frontline staff members will not be affected
• Robert Iger announced the decision after facing pressure

As part of its previously announced intention to eliminate 7,000 jobs, Walt Disney Co. announced Monday that it has started its second round of layoffs. Employees from divisions such as ESPN will be among those let go in this round.

The corporation announced that thousands of American workers across a number of business units, including its entertainment division and its parks, experiences, and products division, would be let go this week. 

In its theme parks and resorts, Disney stated that it does not anticipate firing any hourly frontline staff members.

“The difficult reality of many colleagues and friends leaving Disney is not something we take lightly,” the company stated.

Disney's CEO, Robert Iger, announced in February that the firm intended to reduce costs by $5.5 billion through job cuts and cost-cutting measures. As part of a larger reorganization strategy, he announced the decision after Disney fired Bob Chapek and reinstated Mr. Iger as CEO.

Mr. Iger has come under pressure to increase Disney's stock price and turn a profit on its streaming service. Disney has faced competition from streaming services as well as declining box office and cable TV revenue in recent years. The company's content executives will have more power as a result of the layoffs and expense reductions.

The company reported that its first round of layoffs started last month and that its more extensive second phase would take place from Monday through Thursday. According to Disney, there will be 4,000 layoffs between the two phases.

After a third round of layoffs, Disney declared that it intended to reduce its workforce by 7,000 by this summer.

Over the past year, Disney stock has decreased by nearly 17%, underperforming the S&P 500.