NEW YORK (AP) -- The Walt Disney Co. will eliminate 4,000 full-time jobs, or about 3 percent of its work force, citing "increasingly pressing challenges of the softening economic environment."
The media and entertainment giant said Tuesday it will try to achieve the cuts through a voluntary program within the next month, but that layoffs will occur if the full reduction is not achieved.
The cuts will come across all operating areas, including the company's corporate staff in Burbank, Calif., the company said.
The company employs 120,000 workers worldwide, with the greatest concentration --55,000 -- in Orlando, Fla.
Disney spokesman John Dreyer said the cuts would result in $350 million to $400 million in annual savings. The company will take a one-time charge of less than $250 million, he said.
In a letter addressed to "fellow cast members," Disney chairman Michael Eisner and president Robert Iger said the company has been working to contain costs and operate more efficiently.
"But despite our progress, the economy has become more challenging in recent months and we must continue to seek ways to manage our businesses even more productively," the letter said.
Disney announced the job cuts after the close of regular trading on the New York Stock Exchange, where it finished up $1.28 to $29.
