Disney is laying off 7,000 employees this year as it scrambles to cut costs amid a looming recession.
The layoffs came to light during Wednesday’s earning call when Disney CEO Bob Iger announced that 3.2% of the company’s workforce would be decreasing. The wave of layoffs will save roughly $5.5 billion. In addition to the job cuts, Disney announced that it would be restructuring into three business facets: Disney Entertainment, which will cover most of its streaming and media functions, ESPN, which is made of the TV network and the ESPN+ streaming platform and lastly, the Disney Parks, Experiences and Products unit, focusing on the amusement attractions.
These many changes come as Disney works to increase revenue across the spectrum. Disney+ has incorporated cheaper, ad-supported tiers to attract new subscribers as streaming competition intensifies. Still, Disney+ continues having issues holding viewers’ attention. The streamer lost 2.4 million subscribers during the first quarter of the fiscal year.
Iger’s return after stepping down in 2020 has been marked by cleaning up the mess left behind by former CEO Bob Chapek, whom he handpicked to take his place. However, Disney execs complained about his leadership and a $1.5 billion loss reported during November’s earning call. Employees also protested over Chapek’s failure to take a stronger stance against Florida’s “Don’t Say Gay” law. Ultimately, he was given the boot, and Iger was welcomed back to get the Disney empire back on track.
A separation package has not been announced.
