Newsbreak: Disney Cuts 7,000 Jobs – Investors Drive Cost-Saving Measures in Slow 2023 Forecast

Disney is cutting 7,000 jobs as part of a cost-cutting measure aimed at saving $5.5 billion, according to a report by CNN on February 8, 2023. The media company is the latest in a series of companies to announce job cuts in response to demands from investors to reduce costs in light of a slow 2023 forecast.

Despite the surprise addition of 517,000 jobs in January, further employment growth is expected to be limited, particularly as larger companies continue to lay off workers. Disney made a net income of $3.19 billion in 2022, and the job cuts, which are around 3.5% of its 200,000 employees, were first hinted at in a November 2022 memo.

Based on a report by AS on February 8, 2023, Disney CEO Bob Iger expressed regret over the job cuts and said, “I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I’m mindful of the personal impact of these changes.” Despite the impact on staff, investors have welcomed the cost-cutting measures and the return of shareholder dividends, which had been suspended since the start of the COVID-19 pandemic. This was reflected in a 4.7% rise in the company’s share price.

Regarding content, Disney is looking to make $3 billion in cuts, excluding sports. Streaming remains a priority for the company, but recent subscriber figures are not encouraging. According to a Twitter post by LetsCinema on February 9, 2023, the company lost 2.4 million subscribers in the last three months of 2022, bringing its total to 161.8 million worldwide. On the day the job cuts were announced, Disney also reported its first quarterly decrease in subscriptions for its Disney+ streaming unit, which lost more than $1 billion in 2022.