Disney cuts jobs in bid to save $5.5 billion
February 9, 2023 - The house-of-mouse is to cut 7,000 jobs as part of a plan to save $5.5 billion and make its Disney+ streaming service profitable, after reporting its first fall in subscribers since it launched in 2019.
Disney chief executive Bob Iger says the entertainment giant is cutting 7,000 jobs (about 3% of its global workforce) in a major cost-cutting excercise to save $5.5 billion and make its Disney+ streaming service profitable – subscribers have fallen by around 1%, the first decline since the service launched in 2019.
Sales at its parks, experiences and products segment grew 21% to $8.74 billion, from $7.23 billion a year earlier.
Revenue for the segment that includes Disney’s movie business edged up 1% to $14.78 billion from $14.59 billion a year earlier.
However, the company’s direct-to-consumer business, which includes its streaming services Disney+ and Hulu, posted a $1.1 billion operating loss amid higher programming and production costs.