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The world’s largest entertainment company announced 7,000 job cuts as part of an effort to save $5.5 billion in costs. The layoffs are in addition to those of other big technology companies such as Amazon, Netflix, Meta and Zoom. In the world of streaming, several companies compete for the first place in subscribers, while Disney executives look for alternatives after the departure of 2.4 million users from their entertainment platform.
Disney joins the wave of massive layoffs. In its reorganization, the entertainment giant hopes to be more efficient and focus on what generates greater profitability, in the midst of a challenging scenario for the technological world and when there is more competition in the market and more demand from users.
“This reorganization will result in a more profitable one. We are committed to operating efficiently, especially in a challenging environment,” said Walt Disney CEO Bob Iger.
Within the restructuring, Disney will lay off 7,000 people to achieve savings of at least 5,500 million dollars, estimates investment cuts of 2,500 million dollars in items not related to content and also continue with its savings plan of 1,000 million of dollars that was launched recently.
The plan was presented to attack three fronts: the reorganization of its entertainment unit, which encompasses film, television and entertainment; a sports-focused unit led by ESPN; and a restructuring for the investment made in parks, experiences and products of the magical world of Disney.
With the change presented this Thursday, February 9, it would already be the third major change that the company has made in less than five years, after the economic reorganization of 2018 when it sought to accelerate the growth of the transmission business and again in 2020 when growth was stimulated. streaming growth worldwide.
Some analysts say the company’s executives are looking to stay ahead of the company they must compete with for subscribers, Netflix, as they try to recoup losses of more than $1 billion from massive subscriber outflows.
with Reuters
