No company is stranger to cost-cutting efforts, but Disney's latest efforts have employees wondering who's next on the chopping block. The house of mouse has fired an entire division, and this is only the beginning. Disney's 2023 box office earnings have already topped a billion dollars just three months into the year, and the company wants to continue to capitalize on its earnings and cut costs. The Next Generation Storytelling & Consumer Experiences group, responsible for Disney's Metaverse efforts, only accounted for about 50 employees. That is disturbing considering that Disney plans to lay off a total of 7,000 people.
These cuts come as part of an effort to restructure the company by Bob Iger, former CEO of Disney. After Bob Chapek was abruptly fired in 2022, he stepped in as interim leader. Many may remember that Iger was the head of Disney during some of its most pivotal moments. It was under his leadership that the company acquired both Pixar and Marvel Studios. Iger was also at the helm when Disney acquired Lucasfilm. These were arguably some of the most important decisions made in the history of the entertainment business. It's undeniable: Iger is a formidable leader with unmatched success. It's really no surprise that he was asked to step in after Chapek was let go.
More Disney Layoffs Coming: Who's Next?
Bob Iger's bloodbath began with a memo sent out on February 8th. In this memo, he detailed his plans for cuts and tried to lighten the blow with some kind words. "The difficult reality of many colleagues and friends leaving Disney is not something we take lightly," he said. "It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company."
Iger plans to finish the 7,000 aforementioned layoffs by summer. Having already dismantled several divisions, it's clear he has no problem doing what needs to be done to keep Disney on top. The next victims of this restructuring effort remain unclear; however, Iger has made it clear that these cuts will affect high and low-level employees alike.