The Walt Disney Company, commonly known as Disney, disclosed on Wednesday that it was laying off 7,000 employees worldwide as its streaming subscribers declined.
This decision was made by the CEO, Bob Iger, as a means of reorganizing the company.
In its 2021 annual report, the group said it employed 190,000 people worldwide, 80 percent of whom were full-time. The storied company founded by Walt Disney said its streaming service saw its first-ever fall in subscribers during the last quarter of 2022 as consumers cut back on spending.
Bob Iger noted that Disney was laying off 7,000 employees due to a recent decline in its subscriber base for its streaming service, Disney. The CEO, Bob Iger, has announced a reorganization of the company as part of a cost-cutting effort.
“I do not make this decision lightly. ” I have enormous respect and appreciation for the talent and dedication of our employees worldwide,” Iger said on a call to analysts after Disney posted its latest quarterly earnings”.
Disney plans to take a hard look at its expenses for film and TV production. The company’s traditional TV business is eroding, and its streaming service is not yet profitable, leading to pressure from an activist investor to reduce costs and plan after Iger’s tenure.
The company will also evaluate the volume and pricing of its streaming content. Iger acknowledged that Disney might have been too aggressive in its promotion efforts.
Analysts at RateCaptain anticipate a drop in Disney’s share price in order to attract more investors.
