Disney CEO says the company will lay off 7,000 employees to cut costs
San Francisco (IANS) Disney CEO Bob Iger has announced the layoff of 7,000 employees in order to cut costs.
During the company’s earnings call for its December quarter, he said the move is “necessary to address the challenges we’re facing today”.
“This is not a decision I make lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I am aware of the personal impact of these changes “said Iger.
On the content side, Disney expects to save approximately $3 billion over the next few years, excluding sports.
He stated that there will be three core business segments under the strategic reorganization: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products.
“This reorganization will result in a more cost-effective, coordinated and streamlined approach to our operations and we are committed to running our businesses more efficiently, especially in a challenging economic environment. In that regard, we are targeting $5.5 billion of cost savings across the company,” said the CEO.
The company’s streaming business lost around $1.5 billion last quarter.
According to current projections, Disney+ will be profitable by the end of fiscal 2024.
Disney Plus added just 200,000 subscribers in the US and Canada for a total of 46.6 million, while its international offering (excluding HotStar) saw the addition of 1.2 million members.
Disney’s direct-to-consumer division, which includes its streaming services, saw a 13 per cent increase in revenue to $5.3 billion, with an operating loss of nearly $1.1 billion.