The Walt Disney Company announced this Wednesday it will lay off 7,000 employees, roughly 3% of its workforceas part of a cost reduction plan that will impact content.
This was reported by the company’s chief executive, Bob Iger, in a phone call with analysts to discuss the results for the first quarter of the fiscal year. earned $1,279 million, up 16% year-on-year.
Disney executives reported the layoffs as follows: Part of a $5.5 billion cost reduction plan3,000 million will correspond to content, excluding those of a sports nature.
The other 2,500 million savings correspond to, among other things, marketing, labor and technology expenditures.
On the other hand, Disney announced will restructure its operations in three segments: one of the parks, experiences and products; another for entertainment and the third dedicated to the ESPN channel and the ESPN+ platform.
The company said in quarterly results released this Wednesday. loss of 2.4 million subscribers to the streaming service Disney+ stated that it caused the losses, but did not quantify them.
In the concluding note, Iger already announced this Wednesday afternoon The entertainment giant would do a “transformation” to find the profitability of its “streaming” business.