Thursday, February 9, 2023, 01:46
The American leisure and entertainment giant The Walt Disney Company has decided to cut 7,000 employees, representing 3.6% of its workforce, all in an effort to improve its profit margins. This was announced this Wednesday by the executive director of the company, Bob Iger, detailing that the restructuring of the company will save them 5,500 million dollars (5,100 million euros) in costs, according to Bloomberg.
As part of the change, Disney’s chief executive has also announced that the company will be reorganized into three divisions: an entertainment unit that includes its 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 that the company has adopted in recent years. These modifications include a reinforcement of its franchises and the development of its online content platform, as detailed by Iger himself.
1,000 million in losses
Likewise, the cuts respond to the losses registered by the company in its ‘streaming’ services due to the marked decrease in paying users. Those red numbers have doubled in 2022 compared to the previous year, with an amount that amounts to 1,050 million dollars (979 million euros).
Disney is the latest of the big streaming content companies to announce downsizing. The main reason, as in the case of its sector rivals, is the slowdown in subscriber growth and increased competition to attract more viewers.