U.S. leisure and entertainment giant The Walt Disney Company has decided to cut 7,000 employees, or 3.6 percent of its workforce, all in an effort to improve its profit margins.
This was announced Wednesday by the company’s CEO, Bob Iger, detailing that the restructuring of the company will save them 5,500 million dollars (5,100 million euros) in costs, as reported by Bloomberg.
As part of the change, the Disney CEO also announced that the company will reorganize into three divisions: an entertainment unit that includes its core film and television businesses, the ESPN sports networks and the theme parks unit, which includes cruise ships and merchandise stores.
These changes are aimed at improving profit margins and are part of the transformation that the company has adopted in recent years, including a strengthening of its franchises and the development of its online content platform, according to Iger himself.
Likewise, the cuts respond to the losses registered by the company in its streaming services due to the loss of users, which have doubled in 2022 with respect to 2021, with an amount that amounts to 1,050 million dollars (979 million euros).
Disney is the last of the major streaming content companies to announce job cuts in response to the slowdown in subscriber growth and increased competition for viewers, as reported by the aforementioned agency.
Source: (EUROPA PRESS)
