Disney, the renowned entertainment conglomerate, has announced the layoff of 7,000 employees. This decision, made by CEO Bob Iger, comes amidst a decline in the number of streaming subscribers and a challenging economic environment, which has also led to similar workforce reductions by other tech companies.
In a statement following the release of the company’s latest quarterly earnings, Iger expressed regret over the decision, acknowledging the talent and commitment of Disney’s employees worldwide. According to the 2021 annual report, the company employed 190,000 people globally as of October 2nd, with 80% of them being full-time.
The company also reported a decline in subscribers for its streaming service, Disney+. The number of subscribers fell 1% to 168.1 million customers on December 31st compared to three months prior, marking the first-ever drop in subscribers for the company.
Despite this, the stock price remained 8% higher in post-session trading, as investors were reassured by the lower-than-expected operating losses for Disney’s streaming platforms, which stood at $1 billion for the October to December period. In terms of overall performance, the Disney Group generated revenues of $23.5 billion for the three-month period, surpassing analysts expectations.
