Disney Lays Off 7K Employees over Business Drop

Disney has lowered its workforce by 7,000 employees in response to a drop in subscribers.

The reduction of 7,000 employees is equivalent to nearly 3.2% of its global workforce. The decision was made in response to Disney+, the company's streaming service, which recorded a decline in its number of subscribers.

In October 2022, Disney employed roughly 220,000 people, of whom about 166,000 worked for the company in the US.

Walt Disney's illustrious firm indicated that consumers' reduced spending caused its streaming service to experience its first-ever plunge in subscribers during the most recent quarter.

Disney+, Netflix's streaming rival, had a 1% decline in subscribers to 161.8 million on December 31 compared to three months earlier.

The job cuts are a part of Disney's efforts to save $5.5 billion in costs. Out of that, $2.5 billion is made up of non-content costs, and $1 billion of those deliberate cost reductions have already started.

By the end of 2024, Disney expects that these cost savings would completely materialize. Disney anticipates making savings of almost $3 billion over the coming years, excluding sports.