Disney CEO Robert Iger announced that the company will lay off employees to reduce costs. It will also reorganize some departments.
Keeping it short
- Disney announced to lay off of 7000 employees across different departments
- The media platform announced layoffs after quarterly earnings
- Lately, Disney is struggling to increase its subscriber count which is impacting its overall revenue.
By Crox Media Desk: Disney is planning to fire 7,000 workers to cut overall costs across the company. The mass media entertainment giant announced on Wednesday that it is planning to reorganize its work structure and cut off jobs to reduce costs. The big decision was taken after the company’s quarterly earnings.
Just like every other tech giant in the USA or across the world. Disney is also taking major steps amid the “Challenging economic environment”. Reports suggest that plan for cost-cutting and layoffs as soon as the Company’s CEO Robert Iger took over from former CEO Bob Chapek last November. Notably, Iger stepped down from his position in 2020 after serving for around 15 years. However, with this return, the company already stated that they are going to make a significant change, including a vital decision to cut off employees.
According to the official statement released by Disney about the quarterly earnings, the company witnessed a slow subscriber growth rate similar to rival Netflix. What made things tenser was that streaming platform Disney Plus only added 200,000 subscribers in the US and Canada, bringing its total to 46.6 million subscribers. For the International Front, excluding Hotstar, the streaming platform saw an increase of 1.2 million subscribers. Meanwhile, the growth rate of ESPN and Hulu is quite low.
The upcoming layoffs at Disney were announced by CEO Iger during a call with analysts after Disney posted these quarterly earnings. “I don’t make this decision lightly, we appreciate the efforts and dedication of our employees worldwide” He further said, “we are targeting $5.5 billion of cost savings across the company and that the cost-cutting and reduced workforce count will help us to achieve this”
However, it is still to be announced which departments are going to be affected.