Disney announces the layoff of 7,000 employees
The Walt Disney Company announced this week the layoff of 7,000 workers, representing almost 4% of its workforce and cost savings of $5.5 billion
The US leisure and entertainment giant The Walt Disney Company has decided to cut 7,000 employees, representing 3.6 percent of its workforce, all in an effort to improve its profit margins.
This was announced this Wednesday by the executive director of the company, Bob Iger, detailing that the restructuring of the company will save them 5,500 million dollars (5,100 million euros) in costs, as reported by the Bloomberg agency.
As part of the change, Disney’s chief executive has also announced that the company will be reorganized into three divisions: an entertainment unit that includes its core film and television businesses, the sports networks ESPN, and the theme parks unit, which includes cruise ships. and product stores.
These changes are aimed at improving profit margins and are part of the transformation that the company has adopted in recent years and that includes a reinforcement of its franchises and the development of its online content platform, as detailed by Iger himself.
Likewise, the cuts respond to the losses registered by the company in its streaming services due to the loss of users, which have doubled in 2022 compared to 2021, with an amount that amounts to 1,050 million dollars (979 million euros). .
Disney is the latest of the large streaming content companies to announce downsizing in response to slower subscriber growth and increased competition for viewers, according to the aforementioned agency.
Source: dpa
(Reference image source: Jose Mizrahi, Unsplash)
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