By Sam Boughedda
Walt Disney (NYSE:DIS) shares edged higher Monday, currently up over 1% after reports that it has begun the first round of its 7,000 job cuts.
The company is set to lay off thousands of workers, which it announced earlier this year, in order to reduce costs. Reuters said a letter it has seen, sent by Disney Chief Executive Bob Iger to employees on Monday, stated the company is trying to create a more "streamlined" business.
While ESPN is said not to be affected by this week's round of layoffs, Reuters stated a source told them that several major divisions, including Disney Parks, Disney Entertainment, Experiences and Products, and corporate, will be impacted.
In the letter sent to employees, Iger reportedly said the company would start notifying the first group affected by the reductions over the next four days.
In addition, a larger round of cuts is scheduled for April "with several thousand more staff reductions," with the final tranche beginning before the start of the summer.
In February, Disney announced it would cut 7,000 jobs in a move to save $5.5 billion in costs and make its loss-making streaming business profitable.
Reuters added that officials for two unions representing cast members at Walt Disney World Resorts in Orlando, Florida, stated that "guest-facing" services were not expected to be impacted by the layoffs.