Google and Amazon laid off more than 50,000 employees in the first month of 2023. Walt Disney will not escape this wave of layoffs, especially in television and streaming. The group announced on Wednesday its intention to cut around 4% of its entire workforce. This means layoffs for 7,000 employees. Shares of the company rose immediately after the announcement, which was expected (it’s always difficult to associate these two pieces of information).
Bob Iger, the CEO does not do lace
CEO Bob Iger makes a statement to his board about the future of the company’s finances. Its objective is to reduce costs by more than $5 billion in part by consolidating the divisions that make and distribute movies and TV shows.
Theme parks work pretty well but streaming doesn’t
Disney has been doing relatively well lately, with rising profits and revenue, strong numbers from theme parks. Disney welcomes more subscribers on owned streaming services such as ESPN+ and Hulu – but not Disney+. This platform lost 2.4 million subscribers in the first quarter of the fiscal year, according to the company’s latest earnings report. Traditional TV profits have fallen and none of the streaming services are gaining money