Disney announced the layoff of 7,000 employees due to a decline in subscribers to its streaming service

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streaming service Disney+ lost 2.4 million subscribers in the last three months of 2022 and, with argument, the entertainment giant announced the layoff of 7,000 employees.

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The Walt Disney Company announced this figure Wednesday, which means about 3% of its workforce, as part of a cost-cutting plan that It will also affect the contentSt.

It is the first time since its launch in 2019 that Disney+ doesn’t earn subscribers in a quarter.

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According to its 2021 annual report, Disney spent October 2 of that year at 190,000 people worldwide.

The company’s top executive said, Bob Igerin a call with analysts to discuss results for the first quarter of its fiscal year, in which it earned $1,279 million, up 16% year-over-year.

Disney executives announced the layoffs as part of a $5.5 billion cost reduction planof which 3,000 million will correspond to content, excluding those of a sporting nature.

Bob Iger, executive of the Walt Disney Company.  Reuters photo.

Bob Iger, executive of the Walt Disney Company. Reuters photo.

The other $2.5 trillion in savings are marketing, labor and technology expenses, among other things.

On the other hand, Disney announced it will renovate its operations in three segments: one of parks, experiences and products; other, of funand a third, dedicated to the channel ESPN and the ESPN+ platform.

The details of Disney’s leaks

In the quarterly results released this Wednesday, the company reported a loss of 2.4 million subscribers on its Disney+ streaming service and has indicated that it produces losses, although it has not quantified them.

In the results note, Iger already announced this afternoon that the entertainment giant would embark a “transformation” to rediscover the profitability of one’s “streaming” business..

In total, the Disney group had revenue of $23.5 billion from October to December, better than expected by analysts.

The group reassured the markets with losses from their streaming platforms (Disney+, ESPN+ and Hulu) less than expectedof 1,000 million dollars in the October-December period.

Shares of the company fell 8% in electronic trading after the markets closed.


Source: Clarin

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