The Walt Disney Company said it would cut about 7,000 jobs as part of a “significant transformation” announced by Chief Executive Officer Bob Iger.
The job cuts represent about 3% of the entertainment giant’s global workforce and were announced after Disney reported quarterly results that beat Wall Street’s expectations.
Mr. Iger returned as CEO in November after the challenging two-year term of his handpicked successor, Bob Chapek.
The company says the job cuts are part of a company-wide $5.5 billion cost savings goal.
As of October 1, Disney employed 220,000 people, of which about 166,000 work in the US and 54,000 work abroad.
In its latest results, solid growth at Disney’s theme parks helped offset dismal performance in the video and movie streaming business.
Disney said it earned $1.28 billion, or 70 cents per share, in the three months to December 31. This compares to net income of $1.1 billion, equivalent to 60 cents per share, a year earlier.
Excluding one-time items, Disney earns 99 cents per share. According to FactSet, analysts expect adjusted earnings of 78 cents per share on average.
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Revenue rose 8% to $23.51 billion from $21.82 billion a year earlier. Analysts had expected revenue of $23.44 billion.
In a statement, Mr. Iger said the company is embarking on a “significant transformation” that management believes will help improve profitability at the company’s streaming business.
The company said Disney+ ended the quarter with 161.8 million subscribers, down 1% from October 1.
Hulu and ESPN+ both reported a 2% increase in paid subscribers for the quarter.
Disney shares were up 3% in after-hours trading.
https://www.independent.ie/style/celebrity/celebrity-news/disney-to-cut-7000-jobs-amid-plans-for-significant-transformation-42333965.html Disney to cut 7,000 jobs amid ‘significant transformation’ plan
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