HomeBusinessDisney To Lay Off 7,000 Employees To Cut Costs: CEO Bob Iger

Disney To Lay Off 7,000 Employees To Cut Costs: CEO Bob Iger

Streaming platform Disney, CEO Bob Iger has announced that the company is planning to lay off 7,000 employees to cut costs. This is his first major decision since he returned to Disney.

CEO Iger said on a call to analysts, “I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide,”

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Iger further added that he’s “targeting $5.5 billion of cost savings across the company” and that the cost-cutting and reduced workforce count will “help achieve this.”

Disney To Lay Off
Source: Google

The CEO said that “This reorganisation 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,”.

Last quarter, the Disney streaming business lost around $1.5 billion.

Disney expects to deliver approximately $3 billion in savings over the next few years, excluding sports.

Disney To Lay Off
Source: Google

Iger said “Our priority is the enduring growth and profitability of our streaming business,”.

He further added “Our current forecasts indicate Disney Plus will hit profitability by the end of fiscal 2024, and achieving that remains our goal,” Iger continued.

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Disney Plus Added 200,000 Subscribers

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) added 1.2 million subscribers.

Hulu and ESPN Plus, Disney To Lay Off
Source: Google

Hulu and ESPN Plus Witnessed Growth

Meanwhile, its other platforms, Hulu and ESPN Plus witnessed modest growth in subscriber rate, with 800,000 and 600,000 new subscribers added respectively.

Disney’s direct-to-consumer division, which includes its streaming services, saw a 13% increase in revenue to $5.3 billion, with an operating loss of nearly $1.1 billion.

As per its 2021 annual report, worldwide, the total number of employees were 190,000

The Disney CEO has not revealed which departments will be impacted with the layoffs.

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