Walt Disney Company will reportedly begin thousands of new layoffs Monday as Republican Florida Gov. Ron DeSantis threatens the company’s self-governing status.
Disney announced its plan to cut 7,000 jobs in February in an effort to make the business more profitable by cutting costs. DeSantis on April 6 announced a plan to scrap a last-second agreement with the corporation to maintain its self-governing status in the state of Florida.
“That story’s not over yet. Buckle up. There’s more coming down the pike,” DeSantis told a meeting of the Midland County Republican Party of Michigan.
The company will eliminate thousands of jobs through Thursday in an effort to cut costs by $5.5 billion, Reuters reported, citing sources familiar with the matter. The new cuts will bring the total number of layoffs to 4,000, according to the outlet.
$DIS Walt Disney Co To Begin Second Wave Of Layoffs, Cutting Several Thousand Jobs – RTRShttps://t.co/VSdqSfAzmW
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Business sectors including Disney Entertainment, ESPN and Disney Parks, Experiences and Products will reportedly be affected by the job cuts, while hourly paid workers at the parks and resorts will likely keep their positions, according to the outlet.
“The senior leadership teams have been working diligently to define our future organization, and our biggest priority has been getting this right, rather than getting it done fast,” an internal memo obtained by Reuters reads. (RELATED: ‘Running Against … Mickey Mouse’: Fox Anchor Blasts DeSantis Over Delay In Campaign Announcement)
“We recognize that it has been a period of uncertainty and thank you all for your understanding and patience,” Disney Entertainment co-chairmen Alan Bergman and Dana Walden wrote in the memo, according to the outlet.
DeSantis announced legislation in April to nullify the last-minute agreements with Disney designed to neuter the governor’s newly-formed state control board, which was created to oversee the company’s special taxing district, the Reedy Creek Improvement District.
“That’s not going to fly,” DeSantis said in a press conference. “We want to make sure that Disney lives under the same laws as everybody else.”