Disney to Cut 7,000 Jobs and Save $5.5 Billion: What it Means for the Company
Disney announcing it will cut 7,000 jobs as it looks to slash $5.5 billion worth of costs. The news comes after the media giant beat wall street estimates for its first quarter earnings and revenue.
Here’s what you need to know:
Disney reporting its quarterly earnings results, beating analyst expectations, on both the top and bottom line.
The house of mouse posting earnings of $0.99/share and $23.5 billion in revenue for the first quarter of 2023.
This is the first earnings report since Bob Iger made his surprise return as Disney CEO back in November. Iger sharing the company’s plans to cut costs which include reducing the workforce by 7,000 jobs.
He told shareholders he does not “make this decision lightly” and that the changes will put Disney in a better position to weather future disruption.
The Disney chief executive reassuring investors the new strategic organization “will result in a more cost effective, coordinated, and streamlined approach” to running the business.
Disney also reported an expected dip in subscribers on its streaming platform, Disney+, but an improving loss overall in its direct to consumer division.
Another bright spot for Disney was its parks and experiences business which remain strong, growing a whopping 21% as Disney fans continue to flock to its theme parks in droves.