The first round of layoffs at Walt Disney (NYSE:DIS) will take place this week as part of the 7,000 job reduction plan that was announced last month. Additionally, the business will start a second round of layoffs in April, with the final affected workers anticipating notice before the summer.
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The cuts are likely to be spread across all the departments, with Disney Media and Entertainment Distribution (DMED) accounting for the majority of them. The business aims to save $3 billion in non-sports content spending and $2.5 billion in other operating costs.
Many companies have announced workforce reductions this year as a result of recession-related fear. Recently, Bed Bath & Beyond (BBBY) disclosed plans to eliminate 1,000 employees. Moreover, Marvell Technology (MRVL) is trimming its workforce by 4% as its performance continues to be marred by weak chip demand.
What is the Price Target for DIS Stock?
On TipRanks, DIS stock commands a Strong Buy consensus rating based on 17 Buys and four Holds. The average stock price target of $120.76 implies 39% upside potential. Shares of the company have gained 7.5% so far in 2023.
