Bob Iger, the CEO of Disney, is reportedly expected to cut the jobs of thousands of people from the company in what is reportedly an effort to save money.
A report from Variety stated that Iger claimed throughout the company’s earnings call for the final quarter of the fiscal year 2022 that the company will need to cut its workforce by a staggering 7,000 employees.
This cut seemingly represents about 3.2% of the total 220,000 global workforce of the company, explained the report.
The company hopes to save well over $5 billion in costs, roughly half of which is seemingly aimed at reducing the level of “non-content costs,” explained the report. The company is also seeking to cut back on all sports by close to $3 billion.
“I have enormous respect and appreciation for the dedication of our employees worldwide,” stated Iger.
The report stated that Iger put forth a new company structure for Disney which is comprised of three separate segments: ESPN, Disney Parks, and Disney Entertainment.
This recent announcement comes on the heels of newly released legislation from Florida Republicans this past week which will allow Governor Ron DeSantis to have the power to appoint all five people who will lead Disney’s tax district in Orlando and will officially rename the district.
This new bill will end up turning the Reedy Creek Improvement District into the Central Florida Tourism Oversight District and will finalize the delivery of a promise issued by DeSantis last year to secure control of the district.
DeSantis’ office stated that the district set up for special taxation, which has allowed Disney to effectively govern itself since 1967, resulted in the theme part being “an unaccountable Corporate Kingdom.”
“Florida is dissolving the Corporate Kingdom and beginning a new era of accountability and transparency,” explained DeSantis’ office. “These actions ensure a state-controlled district accountable to the people instead of a corporate-controlled kingdom.”
DeSantis’ office complied a list of goals for the new legislation:
- Permanently eliminates Disney’s self-governing status.
- Imposes a state-controlled, term-limited board — with members appointed by the governor — on Disney and its property.
- Allows the state to impose taxes on Disney for possible road projects outside of the District’s boundaries.
- Ensures that Disney pays the $700+ million in unsecured debt — not Florida taxpayers.
- Provides no control of the district to the leftist local government in Orange County, which threatened to leverage the situation to raise local taxes.
- Imposes Florida law so that Disney is no longer given preferential treatment.
- Prevents Disney from gaining more land by eminent domain.
- Creates an avenue to compel Disney to contribute to local infrastructure.
The Governor’s Office also put out a list of a few of the powers previously held by Disney when they governed themselves:
- No-bid procurements of construction contracts.
- Operating standards that varied from Florida Statute.
- Exemptions from regulatory reviews and approvals that other companies must navigate.
- Full self-governing status with a Disney-selected board.
- The ability to build airports and nuclear facilities.
- Acquisition of property beyond the District’s territory by condemnation and eminent domain.
- Unilateral boundary changes.
As the president of Walt Disney World Resort, Jeff Vahle stated that the company was keeping a close eye on the legislation.
“We are monitoring the progression of the draft legislation, which is complex given the long history of the Reedy Creek Improvement District,” he concluded. “Disney works under a number of different models and jurisdictions around the world, and regardless of the outcome, we remain committed to providing the highest quality experience for the millions of guests who visit each year.”