2023-02-09 Economy
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Disney's Bob Iger will lay off 7,000 workers as company cuts back on costs - despite beating earning expectations and revenue growing to $23.51 billion in 2022 as Ron DeSantis seizes control of its Florida Reedy Creek Improvement District
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[Daily Mail, where America gets its news] - Bob Iger is planning to lay off some 7,000 employees to cut back costs in the entertainment and ESPN divisions
- He announced plans on Wednesday to restructure the company and eliminate a division set up by his predecessor Bob Chapek
- The move comes as Florida Gov. Ron DeSantis seizes control of its Reedy Creek Improvement District
On Wednesday, Iger announced his plans to restructure the company, effectively eliminating the Disney Media and Entertainment Distribution group set up under former CEO Bob Chapek.
The new structure, according to the Hollywood Reporter, will have only three divisions, Disney Entertainment — which will include film and TV assets as well as Disney+; ESPN — which will include ESPN and ESPN+; and Parks, Experiences and Products — which will include theme parks and the consumer products team.
As part of that changeup, Disney will cut 7,000 jobs — representing a little over three percent of its global workforce. The cuts are likely to predominantly affect the entertainment and ESPN divisions, despite the company beating analyst's expectations for the fourth quarter of 2022.
Disney to slash 7,000 jobs as Iger reveals sweeping revamp of business
[NYPOST] Walt Disney CEO Bob Iger on Wednesday announced a sweeping corporate restructuring that will slash 7,000 jobs as part of an effort to achieve $5.5 billion in cost savings.
The Mouse House, which is under pressure to turn a profit from its global streaming business, said it would reorganize into three segments: an entertainment unit that encompasses film, television and streaming; a sports-focused ESPN unit; and Disney parks, experiences and products.
"I do not make this decision lightly," Iger said on Wednesday’s conference call with investors, regarding the cuts.
Iger outlined the cost-cutting plan to investors during the company’s fiscal first-quarter earnings call, in which Disney reported adjusted earnings per share of 99 cents, ahead of the average analyst estimate of 78 cents, according to Refinitiv data.
Net income came in at $1.279 billion, below analyst estimates of $1.429 billion. Revenue hit $23.512 billion, ahead of Wall Street estimates of $23.4 billion.
Iger said he planned to cut $2.5 billion in sales and general administrative expenses and other operating costs, an effort that is already under way. Another $3 billion in savings would come from reductions in non-sports content, including the layoffs.
"There’s a lot to accomplish but let me be clear, this is my No. 1 priority," said Iger, touting the importance of streaming and returning value to shareholders.
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Posted by Skidmark 2023-02-09 00:00||
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Posted by Tom 2023-02-09 16:14||
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