Disney may cut another 4,000 positions
Previously announced to lay off 7,000 employees and following the departure of Jeremy Doig, the streaming media service technical leader, Disney is now set to undertake even greater cost-cutting measures.
According to Business Insider, Disney is currently implementing a larger-scale cost-cutting plan, requesting management to submit budget reduction plans and a list of personnel to be laid off by April this year.
It is not yet clear whether Disney will cut more staff all at once or gradually, but it is expected that at least 4,000 employees will be laid off after April this year.
In its Q1 2023 earnings report released in February, Disney revealed plans to restructure the organization to transform the company, including layoffs and expense reductions, to cope with global economic changes and drive the company’s future operating model focused on streaming media services. The company had previously announced plans to lay off 7,000 employees, but the latest news of a plan to lay off another 4,000 shows that Disney will use more specific measures to reduce operating expenses.
Currently, there are about 161.8 million paid Disney+ subscribers, which saw only a 1% decline from its launch in mid-November 2019 until October 2022. Disney emphasized that although there was a decrease in the number of subscribers, its profitability has improved.
However, the decline in advertising revenue, international exchange rates, and decreased revenue from subsidiary companies have become potential concerns for Disney’s development. Therefore, it hopes to increase its operational profitability through a more specific organizational restructuring.