Pawan Kumar
Disney to lay off 7000 employees to cut costs
According to CEO Bob Iger, the massive entertainment company Disney is firing 7,000 workers to reduce costs. He stated that the action is “essential to address the difficulties we’re experiencing today Thursday, February 9” on the company’s earnings call for the December quarter.
“I did not make this choice hastily. I am aware of the personal impact of these changes and have the utmost regard and appreciation for the brilliance and dedication of all of our employees worldwide, said Iger.
Disney anticipates saving $3 billion in content costs over the following five years, excluding sports.
According to him, there would be three main business sectors under the strategic reorganisation: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products.
We are committed to operating our businesses more efficiently, especially in a difficult economic environment, and this reorganisation will result in a more affordable, integrated, and streamlined approach to our operations. We are aiming to save the corporation $5.5 billion in costs overall in this area, the CEO stated.
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In the most recent quarter, the company’s streaming division lost around $1.5 billion.
According to its current projections, Disney+ will become profitable by the end of the fiscal year 2024.
Only 200,000 more people joined Disney Plus in the US and Canada, bringing the total to 46.6 million, while 1.2 million more people joined its foreign offering (excluding HotStar).
With an operating loss of about $1.1 billion, Disney’s direct-to-consumer business, which includes its streaming services, witnessed a 13% increase in revenue to $5.3 billion.
