Disney to cut 7,000 jobs as streaming site records $.1.5bn loss
Disney will be cutting 7,000 jobs in a massive shake-up to the company, the chief executive Bob Iger has said. The company’s mass job cuts come as subscriber numbers for its streaming service fall.
The job cuts are part of a plan to save $5.5bn and make its Disney+ streaming service profitable.
The changes have been announced alongside the latest quarterly figures.
Commenting on the job cuts, Mr Iger said: “I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I’m mindful of the personal impact of these changes.”
He said the changes would “better position us to weather future disruption and global economic challenges”.
The cutting of 7,000 jobs amounts to around 3.6% of Disney’s workforce around the globe.
Disney+ remains the top priority
Meanwhile, Disney reported an 8% rise in sales to $23.5bn (£19.4bn) between October and December last year. Profit also rose, up by 11% to $1.3bn.
However, Disney+ reported a $1.5bn loss and its subscribers fell by around 2.4m to 161.8m.
The plan is to restructure the company into three segments – entertainment (Film, TV and streaming) sports-focused ESPN and Disney parks, experiences and products.
“This reorganisation will result in a more cost-effective, coordinated approach to our operations,” Mr Iger told analysts on a conference call.
The company’s streaming service remained its top priority, he added.
