Disney begins second round of layoffs as company aims to cut 7,000 jobs by summer

Disney (DIS) will lay off thousands of more workers this week as it looks to slash 7,000 jobs by the summer.

This week marks the second round of job cuts following a first round that began the week of March 27. Disney officials said Monday that at the completion of this second wave, 4,000 jobs will be eliminated.

The eliminations will occur across the company’s business segments, including Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. They will also happen across the country, from Burbank to New York and Connecticut.

Disney chief Bob Iger, who stepped back into the CEO position in November, has remained hyper-focused on profitability as investors shift focus away from subscriber growth and put more emphasis on margins. The company's direct-to-consumer division shed a whopping $4 billion-plus in its fiscal 2022 ended Oct. 1, after it spent an estimated $33 billion on content last year.

Since then, Iger has stressed a direct link between content decisions and financial performance, especially amid a challenging macroeconomic environment that has pressured other media giants — like Warner Bros. Discovery (WBD) and Paramount Global (PARA) — to enact their own cost-saving initiatives.

Disney had previously announced the effort to slash 7,000 jobs as it looks to eliminate $5.5 billion in costs. The company went through its first round of layoffs at the end of March with more job cuts expected before the start of the summer to get to the target.

In addition to the layoffs announced in February, Disney also disclosed plans to restructure the organization into three core business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products.

At the time, Iger said the new strategic organization, "will result in a more cost-effective coordinated and streamlined approach to our operations."

Disney is set to report its fiscal second quarter earnings results on May 10.

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance