Disney (DIS) will lay off 7,000 workers as the company seeks to slash $5.5 billion in costs. As a result, the media giant plans to restructure the organization into three core business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products.
"We will be reducing our workforce by approximately 7,000 jobs," CEO Bob Iger said during the company's first quarter earnings call. "While this is necessary to address the challenges we're facing today, I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I'm mindful of the personal impact of these changes."
Disney shares were up as much as 8% following Iger's comments on staff cuts and cost reductions. Shares have since pared gains modestly in after-hours trading, up about 5%.
Disney reported quarterly results after the bell on Wednesday that showed a beat on both the top and bottom lines as demand for the company's theme parks soared during the holiday period.
As expected, Disney+ subscribers showed a slight dip in the first quarter due to the absence of the Indian Premier League cricket tournament on its Indian brand, Disney+ Hotstar.
Streaming losses narrowed to $1.1 billion in Q1 against a loss of $1.5 billion in the fourth quarter — ahead of the company's previous guidance as Disney's ad-supported tier and recent price increases helped pare losses.
Wednesday's report served as the first since CEO Bob Iger's return to the company in November
In his prepared remarks, Iger said the new strategic organization, "will result in a more cost-effective coordinated and streamlined approach to our operations, and we are committed to running our businesses more efficiently, especially in a challenging economic environment."
Alan Bergman and Dana Walden will be Co-Chairs of Disney Entertainment, which will include the company's full portfolio of entertainment media and content businesses globally, including streaming.
Jimmy Pitaro will continue to serve as Chairman of ESPN, which will include ESPN Networks, ESPN+, and its international sports channels, while Josh D'Amaro will continue to be Chairman of Disney Parks, Experiences and Products.
Iger underscored his commitment to creating a direct link between content decisions and financial performance. He said Disney+ is on track to achieve profitability by the end of fiscal 2024.
Elsewhere on the call, Iger revealed he has asked the board to reinstate the company's dividend by the end of the calendar year — something activist investor Nelson Peltz pushed for explicitly in his proxy battle.
The dividend, which was halted during the pandemic in an effort to conserve cash, will be "modest" at first but steadily increase over time, the executive said, adding: "Our cost cutting initiatives will make this possible."
Peltz's Trian Fund Management said it owns approximately 9.4 million shares of Disney's stock, which equates to roughly $900 million. The hedge fund, which disapproved of Iger's surprise return, is pushing for additional cost cuts, operational adjustments, and a post-Iger successor — something the company wants as well.
"On the topic of succession, the board recently established a dedicated succession planning committee headed by Mark Parker, who will become chairman of the Walt Disney company’s board following its annual meeting in early April," Iger said on the call.
The executive did not directly address the current proxy fight with Peltz. The company will host its annual shareholder meeting on Monday, April 3 at 10am PT.
Mercy ceases to be a virtue when it enables further injustice. -Brent Weeks
Disney (DIS) will lay off 7,000 workers as the company seeks to slash $5.5 billion in costs. As a result, the media giant plans to restructure the organization into three core business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products.
"We will be reducing our workforce by approximately 7,000 jobs," CEO Bob Iger said during the company's first quarter earnings call. "While this is necessary to address the challenges we're facing today, I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I'm mindful of the personal impact of these changes."
Disney shares were up as much as 8% following Iger's comments on staff cuts and cost reductions. Shares have since pared gains modestly in after-hours trading, up about 5%.
Disney reported quarterly results after the bell on Wednesday that showed a beat on both the top and bottom lines as demand for the company's theme parks soared during the holiday period.
As expected, Disney+ subscribers showed a slight dip in the first quarter due to the absence of the Indian Premier League cricket tournament on its Indian brand, Disney+ Hotstar.
Streaming losses narrowed to $1.1 billion in Q1 against a loss of $1.5 billion in the fourth quarter — ahead of the company's previous guidance as Disney's ad-supported tier and recent price increases helped pare losses.
Wednesday's report served as the first since CEO Bob Iger's return to the company in November
In his prepared remarks, Iger said the new strategic organization, "will result in a more cost-effective coordinated and streamlined approach to our operations, and we are committed to running our businesses more efficiently, especially in a challenging economic environment."
Alan Bergman and Dana Walden will be Co-Chairs of Disney Entertainment, which will include the company's full portfolio of entertainment media and content businesses globally, including streaming.
Jimmy Pitaro will continue to serve as Chairman of ESPN, which will include ESPN Networks, ESPN+, and its international sports channels, while Josh D'Amaro will continue to be Chairman of Disney Parks, Experiences and Products.
Iger underscored his commitment to creating a direct link between content decisions and financial performance. He said Disney+ is on track to achieve profitability by the end of fiscal 2024.
Elsewhere on the call, Iger revealed he has asked the board to reinstate the company's dividend by the end of the calendar year — something activist investor Nelson Peltz pushed for explicitly in his proxy battle.
The dividend, which was halted during the pandemic in an effort to conserve cash, will be "modest" at first but steadily increase over time, the executive said, adding: "Our cost cutting initiatives will make this possible."
Peltz's Trian Fund Management said it owns approximately 9.4 million shares of Disney's stock, which equates to roughly $900 million. The hedge fund, which disapproved of Iger's surprise return, is pushing for additional cost cuts, operational adjustments, and a post-Iger successor — something the company wants as well.
"On the topic of succession, the board recently established a dedicated succession planning committee headed by Mark Parker, who will become chairman of the Walt Disney company’s board following its annual meeting in early April," Iger said on the call.
The executive did not directly address the current proxy fight with Peltz. The company will host its annual shareholder meeting on Monday, April 3 at 10am PT.
I wonder what they think of "The State of the Union" now.....😉
Biden's most truthful quote ever came during his first press conference, 03/25/21. Drum roll please...... "I don't know, to be clear." and THAT is one promise he's kept!!!
Glad to see the backfire after them pushing liberal agenda down the families throat. They thought the small vocal group represented a good portion of the country. People are getting tired of it and the pendulum is swinging back. If Trump or DeSantis gets in the reversal will continue. It's too late to stop it but we can slow it down before blood has to be shed.
l told my pap and mam I was going to be a mountain man; acted like they was gut-shot. Make your life go here. Here's where the peoples is. Mother Gue, I says, the Rocky Mountains is the marrow of the world, and by God, I was right. - Del Gue
"While this is necessary to address the challenges we're facing today, I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I'm mindful of the personal impact of these changes."
Why do these overpaid CEO's always try and blow smoke up everyone's ass with their bullchit? These jerks don't give a dam about anyone but themselves. That dirtbag pos Iger is the one who started all the woke nonsense at Dizzy! I'm sure he'll get about half those salaries as a bonus tho for coming back to save the company he wrecked. Dizzy used to be a pretty good company.
I read about Boeing today, outsourcing the HR department and office positions. Glad I don't have to call in for help, probably be talking to someone in India.
Someday someone may kill you with your own gun, but they should have to beat you to death with it because it is empty.
Used to really enjoy Disney. Have camped at Ft wilderness a bunch since the early 80’s. Not anymore. There price have skyrocketed and there values went down.
I read about Boeing today, outsourcing the HR department and office positions. Glad I don't have to call in for help, probably be talking to someone in India.
No HR is more positive than negative. I'd rather tell folks my Sister was a whore on the Vegas Strip than HR. At least they would know she provides a service and might be honest.
Parents who say they have good kids..Usually don't!
Well, I guess they need some government subsidies to keep them afloat, that will be next.
They're sure not gonna get it from our Govna! And wait till they get their "special exemption" rescinded! Don't know anyone willing to go there now and we live in the state! Me thinks they'll be laying off a few more folks!! Fuggem!
ESPN is going to have to make some hard decisions down the road. Losing subscribers while locked into long term high dollar broadcast contracts with professionals and colleges.
have you paid your dues, can you moan the blues, can you bend them guitar strings
I read about Boeing today, outsourcing the HR department and office positions. Glad I don't have to call in for help, probably be talking to someone in India.
No HR is more positive than negative. I'd rather tell folks my Sister was a whore on the Vegas Strip than HR. At least they would know she provides a service and might be honest.
Truth.
Mostly women and most of the ones I had to deal with were certified b1tches.
I happen to be staying at Disney this week. My wife wanted to come here because it's Disney's 50th anniversary. When she was a kid she attended a grade school in South Bend (50 years ago) that was named the Walt Disney School so Disney is something near and dear to her heart. Disney World is not exactly my cup of tea but sometimes I have to make a sacrifice for the greater good if you know what I mean. This company must really be squandering money somewhere because during the Magic Kingdoms Tuesday evening fireworks show there was a mass of humanity like I have never seen before and everyone was wearing some type of Disney branded product such as T-shirts, hats, backpacks, Mickey ears, etc ($$$).
I wonder when the wokesters will realize their relatively low-paying job was eliminated in large part to allow for the reinstatement of a dividend that will largely go to "fat cats"?
Should be some howling coming from that!
I would be happy to see the entire Disney enterprise bulldozed. Horrible outfit with horrible values.
My wife and I were part of the Disney exodus back in the 90's. Would not subject our kids to it.
USMC 0351
We know the price of everything and the value of nothing.
I guess Disney is so bad they made Buzz Lightyear gay. My son and I laughed a bit, but little kids watch this crap. ... .
But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
Kabuki theater for the Financial Guys... DIS stock is up +20% in the past month while they have been "talking" about this to avoid a proxy fight. Same thing happened with P&G 30 years ago. KKR started sabre rattling because P&G had not done a "down sizing" like many of their corp peers. Stock prices started to sink. P&G announced they would begin a "restructuring program", and the next day stock was up 20-30%. Long before the first body left the building...
Wonder how much this has to do with their special tax district status being looked at??? Has it been revoked or is gonna be revoked???
And the beautiful people running the place are gonna or are taking a hit in their Benjamin's. They have the ability to tax at their own rates and fees, and are exempt from things like building codes and other state requirements for businesses IIRC. Basically a little kingdom doing their own thing for decades....
Not to mention their active role in society's moral decay and the Liberal Socialist Democrat agenda they flagrantly promote targeting and moulding children to fuuuked up schit....
Kind of a drop in the bucket of their nearly 230,000 employees approx. 3.1%, most is a limited segment that wasn't doing well, and most will most likely be in early retirements. It's not like the company is doing poorly or ready to fail, in fact I believe the stock was up lately.
Wonder, who was behind the Army giving the remainder and largest share of the JLTV construction to AM General in Illinois taking it away from the original designer and contractor Oshkosh in Wisconsin? Now that was a [bleep]-up!
Wonder, who was behind the Army giving the remainder and largest share of the JLTV construction to AM General in Illinois taking it away from the original designer and contractor Oshkosh in Wisconsin? Now that was a [bleep]-up!
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