Disney (DIS) has reportedly begun its third and final round of layoffs this week as the company looks to slash 7,000 jobs by the summer.
According to Deadline, the cuts will impact more than 2,500 jobs across the entire company. Parks and Resorts remains mostly untouched with the television division also largely unscathed, the outlet noted.
Disney did not immediately respond to Yahoo Finance's request for comment.
Analysts have been concerned over near-term uncertainties surrounding the company, such as declining linear networks, direct-to-consumer hurdles, and a slowing parks business. Adding to the challenges is an ongoing writers' strike that has sparked production shutdowns across the industry. Disney shares are up a modest 3% year-to-date, compared to the S&P's (GSPC) increase of nearly 10%.
The media giant had previously announced the effort to slash 7,000 jobs in February as part of wider cost cuts and restructuring plans. The company went through its first round of layoffs at the end of March. Its second and largest round occurred in late April.
Disney stock saw its biggest decline in six months after it reported Disney+ shed 4 million subscribers in its fiscal second quarter following recent price hikes.
Streaming losses narrowed to $659 million in the quarter — above consensus estimates of $850 million — from a loss of $887 million in the year-ago period. The company reported a streaming loss of $1.1 billion in Q1 and a $1.5 billion loss in Q4.
Disney has reiterated plans to slash $5.5 billion in costs, which will include $3 billion in content costs. The company confirmed on its latest earnings call it will take a content impairment charge between $1.5 billion and $1.8 billion amid plans to remove multiple series and specials from both Disney+ and Hulu.
Deadline reported late last week that several titles, including Disney+’s "Willow," "Big Shot" and "The Mighty Ducks: Game Changers," along with Hulu’s "Dollface" and "Y: The Last Man," will be removed from their respective services on May 26.
Also last week, the media giant cancelled plans to relocate thousands of California-based employees to the state of Florida and build a new campus in the Lake Nona region of Orlando. The news comes amid the company's ongoing feud with Florida Governor Ron DeSantis.
In an interview at JPMorgan's Global Technology, Media & Communications Conference on Monday, Josh D'Amaro, chairman at Disney Parks, Experiences, and Products, reiterated comments he told employees, saying the decision stemmed from changes in leadership and business conditions and that the company still plans to invest $17 billion in Walt Disney World over the next 10 years.
D'Amaro added the DeSantis battle has "not impacted our business results," citing the consistently strong performance of the theme park division, which saw operating income hit $2.17 billion in the quarter.
"We’re thinking pretty aggressively about where we can take things in Florida," he continued. "I’m excited about what’s in store."
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at [email protected]
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