Disney disclosed a USD 5.5 billion cost reduction during its quarterly results call with investors, with USD 3 billion coming from content (other than sports) and the remaining USD 2.5 billion coming from non-content reductions.
In addition to this news, Disney announced that it would be removing 7,000 positions from its staff. According to a filing with the SEC, the company employed around 2200000 individuals worldwide, of which approximately 166,000 were located in the United States and approximately 54,000 were located in other countries.
Media firms like as Warner Bros. Discovery have been cutting back on the amount of money they spend on creating new content as they work to turn a profit from their streaming businesses.
Due to the increased level of competition, subscriber growth has slowed down, and as a result, businesses have been seeking for new ways to increase their revenues. Some services, such as Disney+ and Netflix, have introduced more affordable choices that are financed by advertisements.
As per the sources, on a call with investors, Disney CEO Bob Iger stated that the company would “take a very close look at the cost of everything we do across television and cinema.”
Since Iger took over as CEO of Disney again and replaced his hand-picked successor Bob Chapek with himself, the reorganization has been in full swing ever since.
Top lieutenants Dana Walden and Alan Bergman, both of whom are considered candidates to succeed Iger as CEO of Disney over the next one to two years, will be in charge of the entertainment division going forward.
Jimmy Pitaro, the current Chairman of ESPN, will take the helm of the ESPN sector, while Josh D’Amaro, who is already in charge of the parks, experiences, and goods segment for Disney, will continue in his role.
