Disney (DIS) is said to be planning thousands of job cuts next week, which will include cutting 15% of its entertainment division.
according to bloombergThe cuts will affect many areas within the entertainment division such as television, movies, theme parks and corporate teams. The report indicated that every region in which Disney operates will be affected, with affected employees notified as early as April 24.
Yahoo Finance reached out to Disney for comment but did not immediately receive a response.
Disney chief Bob Iger, who returned to the CEO role in November, has remained focused on profitability as investors shift their focus away from subscriber growth. The company’s direct-to-consumer division lost more than $4 billion in the 2024 fiscal year that ended Oct. 1, after spending an estimated $33 billion on content last year.
Since then, Iger has emphasized a direct link between content decisions and financial performance, especially in a challenging macroeconomic environment that has put pressure on other media giants — such as Warner Bros. Discovery (WBD) and Paramount Global (PARA) – to activate their cost savings. initiatives.
Disney shares, which reflect the broader markets, fell Wednesday afternoon in the wake of the news, with shares down nearly 2%. Shares also fell late Tuesday after mixed earnings results from Netflix missed the streaming giant’s subscriber estimates on Wall Street.
Disney earlier announced an effort to cut 7,000 jobs as it looks to shed $5.5 billion in costs. The company went through its first round of layoffs at the end of March with more job cuts expected before the start of summer to complete the 7,000 job target.
In addition to the layoffs announced in February, Disney also revealed plans to restructure the organization into three core business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products.
At the time, Egger said the new strategic organization “will result in a more cost-effective, streamlined, streamlined approach to our operations.”
“We expect cost reduction initiatives to really start to kick in during the June and September quarters, resulting in improved broadcast loss and smaller [year-over-year operating income] Deutsche Bank said in a new note on Tuesday, reiterating the buy rating on the stock.
The bank, which is particularly bullish on Disney’s theme parks division and its slate of upcoming films, sees an “attractive setup” for stocks in the back half of this year, writing: “DIS [fiscal third quarter] It will be an earnings turning point as the company reverses from three consecutive quarters of declining earnings back to positive, sustainable earnings growth.”
Disney is scheduled to report its fiscal second-quarter earnings results on May 10th.
Alexandra Channel He is a senior correspondent at Yahoo Finance. Follow her on Twitter aliecanal8193 and email it to [email protected]
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