Disney is cutting 7,000 jobs. Bob Iger, the CEO of the American media group, announced this on Wednesday. This would be more than 3 percent of the global workforce. With the intervention, Iger wants to reduce costs at Disney.
The CEO says he does not take the decision lightly, but he says it is necessary “to address the challenges we face today”. Streaming service Disney+ posted a loss of $1 billion in the past quarter. The number of subscribers decreased for the first time, mainly due to price increases.
In the past quarter, the group was able to benefit from higher visitor numbers for its theme parks, such as Magic Kingdom, Tokyo Disney Sea, EPCOT and Disney Hollywood Studios. That branch generated a quarterly operating profit of $ 3.1 billion. That is a quarter more than in the same period a year earlier. The group did particularly well during the Christmas period.
Bob Iger stepped down as CEO in 2020, but returned to the position last November 2022, due to disappointing results. Iger has made several course changes since his return and is now under intense pressure to boost financial results.
The company posted net profit in the past quarter of $1.3 billion, below market analysts’ expectations. Total sales amounted to $23.5 billion. That was a bit better than expected.
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