Mouse House Loses the Magic, Disney CEO Bob Iger Slashes 7,000 Jobs in Bid to Cut Costs by $5.5 Billion
Red StateFeb 09, 2023
On Wednesday, Walt Disney Co. announced plans for 7k layoffs – representing a 3.6% reduction in its global workforce – and a broad restructuring of the company in the aftermath of the release of its first quarterly results since the reinstatement of CEO Bob Iger.
According to the company, it earned a better-than-expected $1.28B (70¢ per share) in the last three months of 2022, compared to $1.1B (60¢ per share) a year earlier.
It shouldn't be surprising that Disney is suffering, considering all the bad press it earned last year. Iger took over a company that fought and lost a culture war against Florida Gov. Ron DeSantis and has made its name synonymous with “woke” content. Disney used to be old-fashioned fun for the whole family, but now most average Americans are steering clear of the brand and its sinister agenda.
Disney was predicated on being a morally instructive company and has long been esteemed as a model for a healthy civic society. Its recent so-called shift in content is merely a reflection of the nation's progressing culture, and GOP's accusation of woke nonsense attests to its inability to keep up with the mainstream.
Although Disney+ Hotstar took a hit in Southeast Asia because of the loss of Indian Premier League streaming rights, subscriber growth has been promising in the US and Canada. Streaming services are all facing stiff competition and are trying to find ways to stop finicky users from canceling and returning month to month. Disney+’s new, cheaper ad-based tier – in addition to its wide-ranging content – could help it grow toward the desired profits.