Streaming giant, Disney, is planning a significant restructuring, including job cuts, to make its streaming business profitable.
The move will affect 7,000 employees — 3.2% of its headcount. As of October 2022, the company had 220,000 people.
The company has also announced that it’d be reorganising into three segments — Disney Entertainment, ESPN, and Parks, Experiences, and Products — to cut costs.
During its quarterly earnings call on Wednesday, Disney also announced a $5.5 billion cost-cutting plan, with $3 billion coming from content (excluding sports) and the remaining $2.5 billion from non-content cuts.
Disney executives stated that the company had implemented approximately $1 billion in cost cuts since the previous quarter.
Flashback: In November 2022, the company froze hiring.
For its Q1 2023 earnings, Disney reported 161.8 million Disney+ global subscribers, a 2.4 million decrease from the previous quarter’s total of 164.2 million.
That’s the streamer’s first subscriber loss since its inception in 2019.
There was also an increase in revenue for the quarter — $23.51 billion — narrowly outperforming expectations of $23.33 billion.
Also, its direct-to-consumer operating loss decreased, falling to $1.1 billion from $1.5 billion in Q4 2022.
Sidebar Alert: Zoom has announced plans to lay off approximately 1,300 employees, or 15% of its workforce.
According to CEO Eric Yuan, the company must adapt to the “uncertainty of the global economy” and “its effect on our customers” as the world adjusts to life after the Covid pandemic.
Article by: chpoint.africa
February 10, 2023 - BY Admin