The Walt Disney Company is not limiting its job-cutting measures to its employees in the United States.
Related: Multiple Executives Lose Jobs as Layoffs Begin at Disney
The latest round of layoffs appears to come from China, where over 300 Beijing-based employees connected to Disney’s streaming services were laid off.
According to The Wall Street Journal, people familiar with the matter said that these employees were working on technology matters specific to personalization and user identification for the streaming platforms.
These layoffs are more than likely tied to the Company’s decision to walk back digitized dreams of the infamous “Chapek Era,” such as the “Disney Prime” membership system and the Disney Metaverse division officially called “Next Generation Storytelling.”
Related: Disney Stands Against Shareholders’ Demand for “Communist China Audit”
The Disney Company still retains significant investments in the Middle Kingdom, defined by the continued operation and development of the Shanghai Disney Resort. However, the business relationship has been strained due to the diplomatic deterioration between the Chinese Communist Party and the United States. Disney’s movie industry, in particular, has been affected, with many of the titles being rejected by the second-largest box office in the world. Only Marvel’s Black Panther: Wakanda Forever and Avatar: The Way of Water have earned significant praise from Chinese moviegoers in recent years.
Related: China Market is Softening on Iger and Disney
Returning Disney CEO Bob Iger has set the goal of eliminating 7,000 jobs–4,000 of which are guaranteed to be occupied–in an effort to reduce costs by $5.5 billion this year alone. Disney Layoffs have also taken some high-level executives, including Marvel Entertainment Chairman Isaac Perlmutter and Chief Compliance Officer Alicia Schwarz.
Disney’s streaming endeavors have reportedly cost the company over $10 billion since 2019 and are not permitted to operate within Mainland China.