Disney’s latest cuts will see 7,000 staff shown the exit door — that’s over 3.5% of Disney’s total workforce. If Bob Iger’s math is correct, the cuts will slash the entertainment giant’s costs by $5.5 billion. The company as a whole is being split into three areas. Streaming services have their own segment which will be shared with “television” and “entertainment,” while “parks, experiences, and products” also gets its own segment. A final segment will focus on “Sports” and will include ESPN. The market responded positively to the news, with Disney’s stock price jumping by 8% following the announcement. Shareholders may also have their dividend restored at the end of the year, should the CEO get his way.
Iger sounds confident that the latest reshuffle is needed to get Disney’s house in order. Speaking about the layoffs and the reshuffle, he says: “This reorganization will result in a more cost-effective, coordinated approach to our operations. We are committed to running efficiently, especially in a challenging environment.” Disney isn’t the only technology and entertainment company to make staff cuts in recent months. The industry as a whole is rushing to restructure following the end of the coronavirus pandemic boom period. Spotify, Amazon, and Meta are amongst the big names that have severed ties with thousands of staff members in a bid to cut costs.
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