Disney: 7000 jobs gone – quarterly profit above expectations9. February 2023
Disney: 7000 jobs gone – quarterly profit above expectations
New York, 2/9/2023
Despite good business in the past quarter, the entertainment giant wants to make significant cuts in personnel. About 7,000 jobs — about 3 percent of the global workforce — are to be cut as part of a program designed to reduce annual costs by $5.5 billion. This was announced by Disney boss Bob Iger on Wednesday evening at the presentation of the quarterly figures.
In view of “global economic challenges”, Iger announced that the group would be restructured. Disney recently earned better than expected: In the three months to the end of December, profits increased by eleven percent year-on-year to $ 1.3 billion (1.2 billion euros). Revenues grew by eight percent to 23.5 billion. With this, Disney exceeded the forecasts.
However, the group lost subscribers to its most important streaming service Disney + after significant price increases. At the end of the quarter, the video service that competes with Netflix had 161.8 million users worldwide – a good one percent fewer than three months earlier. Disney’s other streaming services, Hulu and ESPN+, posted modest gains. In addition, the division’s loss of $1.1 billion was lower than feared. In the previous quarter, the minus was $ 1.5 billion.