Disney CEO Bob Iger is reportedly set to cut thousands of people from the company in an attempt to save money.
Variety reported that Iger said on the company’s earnings call for the final quarter of fiscal-year 2022 that the company will reduce its workforce by 7,000 employees.
The cut represents 3.2% of the company’s 220,000 global workforce, the report said.
The company hopes to save more than $5 billion in costs, half of which is aimed at cutting back on “non-content costs,” the report said. The company also is looking to cut back on sports by roughly $3 billion.
“I have enormous respect and appreciation for the dedication of our employees worldwide,” Iger said.
The report said that Iger laid out a new company structure for Disney comprised of three separate segments: Disney Entertainment, ESPN, and Disney Parks.
The announcement comes after newly released legislation by Florida Republicans this week will allow Governor Ron DeSantis to appoint all five leaders of Disney’s tax district in Orlando and will officially rename the district.
The bill will turn the Reedy Creek Improvement District into the Central Florida Tourism Oversight District and will deliver on DeSantis’ promise last year to take over the district.
DeSantis’ office said that the special tax district, which has allowed Disney to govern themselves since 1967, turned the theme park into “an unaccountable Corporate Kingdom.”
“Florida is dissolving the Corporate Kingdom and beginning a new era of accountability and transparency,” DeSantis’ office said. “These actions ensure a state-controlled district accountable to the people instead of a corporate-controlled kingdom.”
DeSantis’ office said that the 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.
DeSantis’ office also released a list of some of the powers that Disney previously had when they governed themselves:
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.
No-bid procurements of construction contracts.
Operating standards that varied from Florida Statute.
Exemptions from regulatory reviews and approvals that other companies must navigate.
Jeff Vahle, President, Walt Disney World Resort, said in a statement that the company was closely watching 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 said. “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.”
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