The Walt Disney Company announced Wednesday that it will lay off 7,000 employeesabout 3% of its workforce, as part of a cost reduction plan that will affect content.
This was reported by the company’s top executive, Bob Iger, in a call with analysts to discuss the results of the first quarter of its fiscal year, in which it earned 1.279 million dollars, 16% more year-on-year.
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Disney executives announced the layoffs as part of a $5.5 billion cost-cutting planof which 3,000 million will correspond to content, excluding those of a sports nature.
The other 2,500 million savings correspond to expenses in marketing, labor and technology, among other things.
Besides, Disney announced that it will restructure its operations into three segments: one of parks, experiences and products; another, for entertainment, and a third, dedicated to the ESPN channel and the ESPN+ platform.
In quarterly results released today, the company reported a loss of 2.4 million subscribers to its Disney+ streaming service and indicated that it shows losses, although it did not quantify them.
In the results note, Iger already announced this afternoon that the entertainment colossus was going to undertake a “transformation” to seek profitability from its “streaming” business.
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