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Disney to cut 4,000 jobs
March 27, 2001: 4:58 p.m. ET

Eyes 3 percent cut of global work force, sees annual savings of up to $400M
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NEW YORK (CNNfn) - The Walt Disney Co. plans to cut 4,000 jobs, about 3 percent of its global work force, the company confirmed Tuesday.

A Disney spokesman said the company expects annual savings of $350 million-to-$400 million. The company also expects a one-time charge of less than $250 million to be taken in the third and fourth quarters.

Disney blamed the job cuts on the slowing economy. The cuts will affect all aspects of the company's business and Disney will try to achieve them through a voluntary program. If the program doesn't work, the company will resort to layoffs.

Disney hopes to make the cuts by July.

Disney told Reuters its financial targets remain the same, excluding charges.

Analysts surveyed by First Call are currently expecting a profit of 17 cents per share in Disney's current second quarter and annual earnings of 77 cents per share.

Shares of Disney (DIS: Research, Estimates) rose 10 cents $29.30 in Instinet after-hours trading. graphic