Scattering Storm Continues, Disney Lays Off 7,000 Employees

CNN Indonesia

Thursday, 09 Feb 2023 10:19 WIB

Jakarta, CNNIndonesia —

Giant company Disney terminate employment or layoffs to its 7,000 employees globally. The layoffs were carried out as a multi-billion dollar cost-cutting initiative to streamline the company’s operations.

The layoffs of 7,000 employees are equivalent to 3 percent of Disney’s total 220,000 employees globally, of which 166,000 employees work in the United States.

“While this is necessary to address the challenges we face today, I am not making this decision lightly,” said Disney CEO Bob Iger.

“I deeply respect and value the talent and dedication of our employees around the world, and I am concerned about the personal impact of this change,” he continued.

Iger said the company is targeting US$5.5 billion in cost savings company-wide, with $2.5 billion of that coming from annual savings in non-content operations.

The remainder is from content operations referring to business units such as movies and television shows.

Cost savings will come from 50 percent of marketing costs, 30 percent savings in labor, and 20 percent less spending on technology, procurement and other costs.

The massive layoffs were announced by Iger after the company released better-than-expected financial results for the fourth quarter of 2022. Disney’s revenue for the quarter rose 8 percent to $23.5 billion, beating analyst estimates of $23.4 billion.

Earnings per share, although slightly lower than last year, were able to top 99 cents excluding special items. That figure was down from the $1.06 per share acquired the previous year.

(fby/agt)