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.
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.
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.
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.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.