Disney admits layoffs and aims to terminate 7,000 workers in order to save costs.
To reduce costs across the board, Disney intends to terminate 7,000 employees. The mass media and entertainment company revealed on Wednesday that it intends to restructure its workplace and eliminate positions in order to cut costs. Immediately following the company’s announcement of the most recent quarterly profits was the crucial decision.
Disney is implementing tough measures in the midst of a “difficult economic environment,” much like the turmoil at other digital firms in the US and around the globe. According to reports, as soon as Disney’s new CEO Robert Iger took over from outgoing CEO Bob Chapek last November, the company began implementing its plan for cost-cutting and layoffs. It is noteworthy that Iger ran the business as CEO for 15 years until resigning in 2020. His return, however, has already prompted the corporation to make some important organisational adjustments, including the choice to reduce the number of employees.
Disney reported a decrease in subscriber growth similar to its competitor Netflix, according to an official release detailing the company’s quarterly earnings.
The fact that Disney Plus only attracted 200,000 subscribers in the US and Canada, bringing its total subscribers to 46.6 million, contributed to the tension. 1.2 million more people joined the streaming service on the global front, excluding Hotstar. Hulu and ESPN Plus, two of its other platforms, saw a minor increase in subscriber rate, with 800,000 and 600,000 new members gained, respectively.
Following the release of Disney’s most recent quarterly earnings, CEO Iger made the announcement of the impending layoffs during a conference call with analysts.
“This decision is not one I make hastily. The talent and commitment of our people throughout the world deserve my utmost admiration and appreciation “Says Iger. He continued by saying that he is “seeking $5.5 billion in cost savings across the corporation” and that the cost-cutting and decreased personnel size will “help achieve this.”
