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.
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.