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