Reportedly, The Walt Disney Company (DIS) is planning to cut thousands of jobs next week, which would involve reducing 15% of its entertainment division. Various areas within the entertainment division, including TV, film, theme parks, and corporate teams, would be affected by the cuts, and every region where Disney operates would be impacted. The report also mentioned that affected employees would be notified as early as April 24.
Disney’s direct-to-consumer division suffered a loss of over $4 billion in fiscal year 2022, which ended on October 1, 2022, after spending an estimated $33 billion on content last year. Given the challenging macroeconomic environment, Disney CEO Iger has emphasized the need for a direct connection between content decisions and financial performance. Other media giants like Warner Bros. Discovery (WBD) and Paramount Global (PARA) have also been forced to implement cost-saving measures to remain competitive in the market.
Prior to this, Disney had already announced its plan to cut 7,000 jobs in an effort to eliminate $5.5 billion in costs. In February, the company completed its first round of layoffs, with additional job cuts expected to reach the 7,000-job goal before the start of summer. Disney also revealed plans to restructure the organization into three core business segments, which include Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products.
Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media. To learn more about this Dow 30 Component, The Walt Disney Company (DIS), and to continue to track its progress please visit the Vista Partners Walt Disney Company, Coverage Page.
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