Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 2025

Disney to axe 7,000 jobs in bid to cut costs

Disney to axe 7,000 jobs in bid to cut costs

In his first set of results since Disney chief executive Bob Iger came out of retirement - and dethroned his appointee - a billion dollar restructuring is announced, ceding to investor pressure over spending.

Around 7,000 jobs are to go at Disney - about 3.6% of the workforce - as a multi-billion dollar cost saving restructuring was announced by chief executive Bob Iger in his battle to improve the company's finances.

It was Mr Iger's first quarterly results announcement since he retook control of the entertainment giant in late November following a shareholder backlash over its performance.

He revealed plans to save $5.5bn in costs under a "significant transformation" to improve profitability at the company's streaming business, which lost more than $1bn in the October-December quarter as Disney+ subscriptions fell.

An earlier $1.5bn quarterly group loss led to the departure late last year of Iger appointee, Bob Chapek.

Mr Iger, who had stepped down from the top job in 2020, told investors on Wednesday night: "This reorganisation will result in a more cost-effective, coordinated approach to our operations.

"We are committed to running efficiently, especially in a challenging environment."

At the same time he revealed plans for sequels of some of the company's biggest animated franchises such as Toy Story, Frozen and Zootopia.


While group net profits came in at $1.8bn, subscribers of the Disney+ streaming service dropped by 2.4 million, the first decline since the platform was launched, but revenues were still up and better than Wall Street forecasts as theme parks brought in operating profit of $3.1bn during the quarter.

Despite the cost of living crisis the theme park profit is a 25% increase from a year earlier, helped by strong attendance over Christmas.

As seen more generally in the streaming industry, Disney+ subscriptions fell: by the end of last year there were 161.8 million people paying to access the Disney+ service - down from 164.2 million on 1 October, Disney said in its results announcement for the first three months of its 2023 financial year.

The fall came as the cost of a monthly ad-free subscription was upped from $7.99 (£6.61) to $10.99 (£9.10) in December.

Despite the Disney+ drop and losses, revenues overall came in ahead of analyst estimates at $23.51bn (£19.47bn).

Mr Iger said streaming remained Disney's top priority. He said the company would "focus even more on our core brands and franchises" and "aggressively curate our general entertainment content".

He also said he would ask the company's board to restore the shareholder dividend by year end.

Chief Financial Officer Christine McCarthy said the initial dividend would likely be a "small fraction" of the pre-COVID level with a plan to increase it over time.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×