As of last Friday, May 26, 2023, The Walt Disney Company has officially completed its 7,000 layoffs.
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The 7,000 Cast Members
The Walt Disney Company’s decision to let go of 3.2% of its workforce was announced by CEO Bob Iger earlier this year. The layoffs were set to target the media and entertainment divisions of the company while leaving Walt Disney World and the theme parks mostly untouched ahead of the peak summer months.
Disney CEO Bob Iger announced a first round of staff reductions beginning March 27, with a second round in April and the third concluding last week. These cuts to the staff were made to reduce the business’s operating costs by $5.5 billion. But it’s hard to imagine a company looking to lay off 7,000 employees (or Cast Members) while handing out a lofty salary to the higher-ups.
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Bob Iger’s Paycheck
It’s no secret that CEOs and chairs of multimillion and multibillion-dollar companies make a decent amount of money. However, when a company is looking to cut operating costs and consider laying off middle-class employees, it begs the question…how much is the company paying its CEO? Quite a lot.
Bob Iger’s compensation is $27 million a year, as reported by Fortune. Granted, it’s not a $27 million-a-year salary. Instead, he is paid $1 million a year in salary, but the figure grows significantly after stock options and other bonuses are added. In Bob Iger’s defense, he is not the highest paid CEO in the world, or even America. But before the Covid pandemic, he had a net worth of $690 million.
Although people who work hard, take risks, and manage a large corporation are entitled to compensation for their efforts, it’s hard to see how Disney can approve layoffs of 7,000 Cast Members while continuing to reward its chief executive officer in the wake of a falling stock price, Disney+ cancellations, and lukewarm company earnings.
Disney has reportedly completed its third round of job cuts as of last Friday, according to @Variety. 7,000 jobs in total were impacted in all three rounds of cuts. https://t.co/XZzSY2PJ0G pic.twitter.com/XOZhxLJTAC
— Scott Gustin (@ScottGustin) June 1, 2023
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There are many ways that could (and still can) reduce expenses moving forward. And if Bob Iger can’t figure out a better path ahead than employee layoffs, maybe he doesn’t deserve his hefty paycheck and bonuses.