In a memo sent to Disney Cast Members this afternoon, Disney Parks, Experiences, and Products Chairman Josh D'Amaro says that job losses will occur in the parks segment.
Echoing Bob Iger's comments yesterday, Josh says that "the company is targeting significant savings across all businesses and the reorganization will result in necessary reductions to our overall workforce. While our teams have made great progress in contributing to cost savings, these measures affect every segment and organization — including ours — and are vital as we implement more cost-effective, coordinated, and streamlined operations."
Although the Disney Parks, Experiences, and Products division will see workforce reduction, D'Amaro says that he does not expect this to affect hourly frontline operations roles.
Yesterday, Disney CEO Bob Iger announced there will be a new Disney organizational structure with three segments - Disney Entertainment, ESPN, and 'Disney, Parks Experiences, and Products.' The restructuring will allow Disney to save $5.5 billion in cost savings, and as part of the plan, Iger says Disney will eliminate 7000 jobs. Cost reductions will be comprised of approximately 50% marketing, 30% labor, and 20% technology procurement and other expenses.
The Walt Disney Company issues statement fully outlining details of its strategic restructuring.
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