Disney Will Fire 7000 Employees Across The Globe: Here's The Real Reason Why?


Radhika Kajarekar

Radhika Kajarekar

Feb 12, 2023


Disney CEO Bob Iger has announced a layoff of 7000 employees, following in the footsteps of almost all major organizations across the globe. 

Disney Will Fire 7000 Employees Across The Globe: Here's The Real Reason Why?

This is Iger’s first major decision ever since he has been leading the company. 

Disney To Lay off 7000 Workers; CEO Confirms

The world’s largest entertainment company, Disney, announced that it was laying off 7,000 workers. This is CEO Bob Iger’s first significant move since being asked back to lead the business late last year.

The layoffs come in the wake of similar actions taken by US tech behemoths, which have already let go of thousands of workers as the economy falters and businesses slow a hiring boom that started at the height of the pandemic.

As per Iger, “I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide.”

The company had 190,000 employees worldwide as of October 2 of that year, with 80% of them working full-time, according to its 2021 annual report.

The illustrious company founded by Walt Disney also reported that consumers’ reduced spending caused its streaming service to experience its first-ever decline in subscribers in the most recent quarter.

Disney’s Subscribers Drop By 1%

Disney+, Netflix’s main streaming rival, saw a 1% drop in subscribers to 168.1 million on December 31 compared to three months earlier. Analysts had generally anticipated the decline, and Disney’s stock price was 8% higher in after-hours trading.

Disney’s lower-than-expected operating losses for its streaming platforms, which came in at $1 billion from October to December, gave investors comfort.

After nearly two decades leading the illustrious company, Iger stepped down as CEO in 2020. His replacement, Bob Chapek, was fired by the board of directors, and Iger was reinstated. It was dissatisfied with his capacity to control expenses.

Chapek was criticised for consolidating authority among a select few executives who handled crucial content decisions despite having little prior Hollywood experience.

Iger’s tenure as CEO is encountering significant challenges, such as a campaign by activist investor Nelson Petz, who is calling for significant cost-cutting after claiming that Disney overpaid to acquire the 20th Century Fox film studio.


Radhika Kajarekar
Radhika Kajarekar
  • 555 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online