The entertainment multinational justifies it in need to improve its profit margins after its poor results in ‘streaming’
US leisure and entertainment giant The Walt Disney Company has decided to cut 7,000 employees, representing 3.6% of its workforce, all in a bid to improve profit margins. The company’s executive director, Bob Iger, announced this Wednesday, indicating that the restructuring of the company will save them $ 5,500 million (5,100 million euros) in costs, according to Bloomberg.
As part of the change, Disney’s CEO also announced that the company will be reorganized into three divisions: an entertainment unit that includes core film and television businesses, the sports networks ESPN, and the theme parks unit, which includes cruise ships. and product stores.
These changes are aimed at improving profit margins and are part of the transformation the company has gone through in recent years. These adjustments include a strengthening of its franchises and the development of its online content platform, as described by Iger himself.
Similarly, the cuts respond to the losses the company has recorded in its “streaming” services due to the marked decline in paying users. Those red figures will have doubled in 2022 compared to the previous year, with an amount amounting to 1,050 million dollars (979 million euros).
Disney is the latest of the major streaming content companies to announce downsizing. The main reason, as in the case of its industry rivals, is the slowdown in subscriber growth and increased competition to attract more viewers.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
