Disney plans to reduce its work force by 7,000 employees. CNBC reports the cost-cutting move puts 3.2% of the entertainment giant’s staff out of work.
Disney CEO Bob Iger, who returned to the helm in November after stepping away in 2021, announced the cuts during a Wednesday morning earnings call.
“While this is necessary to address the challenges we face today, I do not make this decision lightly,” the New York native said.
Iger also said Disney would trim $5.5 billion in spending — most of which will be trimmed from content.
The company’s stock shot-up more than 8% in after market-trading, CNBC reported.
Iger’s predecessor, Bob Chapek, told Disney executives in a November memo the company would “have to make tough and uncomfortable decisions” in 2024, according to the Los Angeles Times. He was ousted shortly after, when the company’s Disney+ streaming service recorded a $1.5 billion quarterly loss.
Deadline reports Disney’s layoffs will be spread throughout the company’s empire, but aren’t expected to greatly impact its Parks and Resort division, which made $7.9 billion in 2022 operating profits. That’s nearly twice the amount Disney+ lost on the year, according to Forbes.
Disney revenue rose by $23.5 billion in the last quarter. That 8% leap exceeded market expectations.
With the COVID-19 pandemic “largely behind us,” Disney should see a promising 2023, Iger said. Stocks are up 22% since his return, according to CNN.
Orlando’s Disney World is celebrating its 50th anniversary through the end of March with promotions including commemorative merchandise sales and new attractions. Disneyland Paris is celebrating its 30-year anniversary through August. Disneyland, the Walt Disney Company’s first theme park, opened in 1955.