Bob Iger, CEO, Inc DisneyAnnounced the chapter to 7,000 employees in an effort to cut costs by $5.5 billion. Of course, he spent a few words from the envelope to justify the decision: “I have great respect and appreciation for the dedication of our employees around the world. Even if it was necessary to address the challenges we face at present, this decision was made not lightly.”
In addition to layoffs, there will also be major layoffs internal reorganization of the company, with Disney Media and Entertainment Group, set up by former CEO Bob Chapek, which will be divided into three divisions: Disney Entertainment (will include Disney Studios, Disney +, Disney Animation, 20th Century Studios, Searchlight and Hulu); ESPN (which will also include ESPN+) and Disney’s parks, experiences, and products.
Also the approach towards the video streaming service Disney + It will be less aggressive in looking for new subscribers, after losing 2.4 million subscribers last quarter, largely due to a dip in India’s Disney+ Hotstar, which hemorrhaged 3.8 million domestic subscribers. Overall, Disney reported a loss of $1.5 billion in its most recent fiscal quarter from its streaming business.
In short, Disney has inevitably joined other major entertainment companies in Cut costs After the inevitable post-pandemic decline in consumption, which has been exacerbated by not-so-rosy global economic conditions.
Whatever the case, Iger also gave some good news, announcing the arrival of a section dedicated to Avatar at Disneyland and talking about the sequels to Toy Story, Frozen, and Zootopia.
