Disney announces 7,000 layoffs, savings of $5.5 billion. And go public

The layoffs on the major American platforms continue. After Microsoft, Disney’s announcement also came on Amazon, Meta and Twitter.

The Disney+ platform lost 2.4 million subscribers in the last three months of 2022 and the entertainment giant announced a cut 7,000 jobs. It’s the first time since the streaming service launched in late 2019 that Disney+ didn’t add any new viewers in the most recent quarter. The platform is important today 161.8 million subscribers worldwide. Overall, the Disney Group reported revenue of $23.5 billion for October through December, beating analysts’ expectations, according to quarterly results released today.

Disney calmed markets with lower-than-expected operating losses for its streaming platforms (Disney+, ESPN+, and Hulu) of $1 billion for the October-December period. According to managers, the layoffs will result in approximately $5.5 billion in cost savings. “While this is necessary to address current challenges, I do not take this decision lightly,” he said Bob Iger during the conference calls on accounts.

According to the 2021 annual report, the group employed people as of October 2 this year 190,000 people around the world that80% of them full-time. The company’s shares are up 8% in after-hours trading on the day New York Stock Exchange. “We believe the work we are doing to transform our business to be creative while reducing costs will result in sustainable growth and profitability for our streaming business,” said Iger.

Disney had asked him for a replacement since 2022 Bob Chapek as CEO to revitalize the company. A champion of Disney’s suave family image, he’s since grappled with platform profitability issues – including Disney+, which launched with great fanfare before his departure – but also a political row in Florida, where one of the parks is located under the Motto “Disney” is the most visited in the world. Relations between the governor of Florida Ron DeSantis and Disney escalated when Bob Chapek opposed a law passed by the governor banning the teaching of sexual orientation topics in Florida elementary schools.

Leave a Reply

Your email address will not be published. Required fields are marked *