Disney Lays off 7,000 Employees

BUSINESS

Disney, the entertainment conglomerate, announced that it would be cutting 7,000 jobs. This was CEO Bob Iger’s first major move since he was asked back to lead the company in late 2022.

The US tech giants have made similar moves to lay off thousands of workers as the economy deteriorates and businesses slow down a hiring surge that began at the height of the pandemic.

This is not a choice he makes lightly. Bob Iger stated following the publication of Disney’s most recent quarterly earnings that he has a great deal of respect and appreciation for the talent and dedication of our employees worldwide.

As of October 2, 2022, the company had employed 190,000 people worldwide, with 80% of them working full-time, according to its 2021 annual report.

The storied company that was started by Walt Disney also said that consumers cut back on spending last quarter, which resulted in the streaming service losing its first ever subscribers. On December 31, 2022, Disney’s customer base decreased by 1% to 168.1 million from three months earlier.

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The decline was broadly anticipated by analysts, and the Disney share price remained 8% higher in post-session trading. Disney’s streaming platform operating losses of $1 billion between October and December provided investors with reassurance. For three months, the Disney Group generated revenues of $23.5 billion across its vast entertainment empire, exceeding analysts’ expectations.

After nearly two decades at the helm of the storied company, Bob Iger, who resigned as CEO in 2020, was reinstated after the board of directors removed his replacement, Bob Chapek. It was dissatisfied with his capacity to control costs.

Additionally, Disney is embroiled in a dispute with Florida Governor Ron DeSantis, who is attempting to regain control of the region surrounding Walt Disney World that has been under the entertainment giant’s control up until this point.