Disney Cutting 7,000 Jobs
Disney announced yesterday that they will be cutting about 7,000 jobs, which is only about 3% of the total company workforce across America. But that still sucks for Florida.
Walt Disney Co. CEO Bob Iger made the announcement yesterday, calling it a “strategic reorganization” designed to cut costs across the board. The news came inmediately after investors learned that earnings for the mega company were above expectations for the last quarter. Iger took over a few months back after a dismal two year span beforehand by former CEO Bob Chapek. The cuts are part of a massive cost savings plan, which will eventually see $5.5 billion dollars of fat to be trimmed form the corporation.
Disney employs over 220,000 people, but that number will get smaller as the year passes. Iger plans to embrace Disney’s core brands, like Star Wars, Marvel and Pixar, while focusing on building their streaming services. Lately, theme parks have been making lots of money for Disney, while streaming and movie revenues have been lackluster. To get an idea of what kind of numbers we’re talking about here, Disney earned $1.28 billion dollars in the LAST THREE MONTHS of 2022. Although revenue was up year-over-year, the company wants more. Their subscriber service numbers were slightly down overall. Their profit also decreased in streaming, but that’s been blamed on increased production costs associated with Disney+ and Hulu. Disney started new pricing for their services last quarter, which raised prices on every tier of their streaming packages.
Disney management says Disney+ will achieve profitability by fall of 2024, which is hopefully correct, since investors are growing weary of mediocre returns. The company has also received criticism over its compensation to high-level executives, saying they are making too much money for their services. Iger also plans to reinstitute a dividend for shareholders, which was stopped during the pandemic back in 2020. Share prices rose by about 6% after the announcement was made. Source: WFLA.com
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