Happily Never After: Disney Cuts 7,000 Jobs

Even the media empire isn't immune to economic downturn, with CEO Bob Iger planning to make cuts to the tune of $5.5 billion.

Even Mickey Mouse isn’t immune to a recession, as Disney announced it would be joining the scores of tech companies in laying off employees as part of a massive corporate restructure.

It’s no secret that the global economy isn’t doing so great right now. News of tech layoffs has become part of everyday life at this point, with the likes of Microsoft, Google, and dozens of others cutting jobs and slashing budgets.

Unfortunately, movies that make more than a billion dollars at the box office aren’t enough to protect you from economic downturn, with Disney announcing some serious cuts across the board to its media empire.

Disney to Cut $5.5 Billion in Costs

Disney announced this week that it would be laying off 7,000 employees, or 3% of its total workforce, in service of some serious cuts the company is going through. CEO Bob Iger noted that Disney plans to slash at least $5.5 billion from the budget in a massive corporate restructure for the media conglomerate.

If you’re worried about this cutting into your Marvel or Star Wars fandom, have no fear. Iger noted in a statement that creative work is the lifeblood of Disney and that these cuts will help them more than anything.

“We believe the work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders.” – Bob Iger, CEO of Disney

As for the specifics of the corporate restructure, Disney will now be made up of only three divisions: entertainment, ESPN, and parks and experiences.

This massive corporate restructure comes on the heels of Iger’s return to the company, who left the company at the end of 2021 but has already reclaimed his status as CEO, and his undoing a lot of changes made by his replacement.

How to Prepare for a Recession

With Disney making cuts, it’s safe to assume that no one is protected from the effects of the upcoming recession. Whether you’re a small startup or an enterprise-level company, shoring up your costs and buckling down for hard times can be daunting, but there are a few things you can do to prepare.

We talked to a wide range of business owners at the end of last year to get some insight into what surviving a recession looks like, with tips like focus on your priorities and get creative. The general consensus was that, instead of halting spending entirely, your business should start spending smart, targeting high yield areas that can make you money until the tide comes back in.

For more information on how to weather the storm, take a look at our guide to recession-surviving tips and come back to Tech.co for all the insight you can handle.

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Written by:
Conor is the Lead Writer for Tech.co. For the last six years, he’s covered everything from tech news and product reviews to digital marketing trends and business tech innovations. He's written guest posts for the likes of Forbes, Chase, WeWork, and many others, covering tech trends, business resources, and everything in between. He's also participated in events for SXSW, Tech in Motion, and General Assembly, to name a few. He also cannot pronounce the word "colloquially" correctly. You can email Conor at conor@tech.co.
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