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Businesses

Bob Iger Announces 7,000 Layoffs As Disney+ Loses Subscribers (latimes.com) 204

Bob Iger, in his first earnings call since returning to the company, announced Walt Disney Co. will shed 7,000 jobs as part of a broader effort to save $5.5 billion in costs. Disney is facing pressure to control costs and boost profits as it continues to lose money from its key streaming business, which includes Disney+. The Los Angeles Times reports: The company's marquee streaming service Disney+ lost 2.4 million subscribers during the first quarter, bringing its total count to 161.8 million, mainly stemming from declines in its Disney+Hotstar product in India. The service gained subscribers elsewhere, adding 1.4 million subscribers in the U.S. and internationally, not including Hotstar. Overall, Disney's streaming apps -- Disney+, Hulu and ESPN+ -- have 235 million subscribers.

Disney's streaming business continued to bleed cash, losing more than $1 billion during the three months that ended in December. Nonetheless, Disney reported earnings and revenues that beat Wall Street estimates. The company generated sales of $23.5 billion, up 8% from the same quarter a year ago. Analysts on average had been expecting $23.4 billion in revenue. Disney's profit was $1.28 billion, up 11%. The Burbank entertainment giant's earnings of 99 cents a share exceeded projections of 78 cents.
"After a solid first quarter, we are embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises," Iger said in a statement. "We believe the work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders."

Last November, Disney reappointed Iger as CEO after Iger's hand-picked successor as CEO, Bob Chapek, came under fire for his management of the entertainment giant.
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Bob Iger Announces 7,000 Layoffs As Disney+ Loses Subscribers

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  • by CyberSnyder ( 8122 ) on Wednesday February 08, 2023 @09:37PM (#63277003)

    Every major streaming service has like two shows you want to watch and a ton of filler. It's not that individually they are that expensive, but by the time you've bought several to watch the shows you want, you're now paying more than what you used to pay for cable.

    • And companies like Disney intentionally make the situation even worse, since they have acquired multiple different streaming channels. One could argue that ESPN+ could stay separate... but now that Disney owns Hulu, it looks like they just arbitrarily assign some shows to Hulu and others to Disney+ basically to attempt driving people to pay for two services when the content is really only enough for one.

      Hulu was arguably worthwhile as a stand-alone service back when they included properties from most of the

    • by Zarhan ( 415465 )

      Indeed. I see two possibilities here:

      1) The market fragmentation drives smaller players out of business, and eventually you'll get maybe three big ones remaining. However, before then, the couple of shows/movies you are interested in are kept exclusive, and as a customer you have to jump thought the whole chore of rotating your streaming service - get access to one for a while and then binge, then switch to next. In the meantime, they also get worse due to the churn, by adding unskippable ads to start and w

    • by tlhIngan ( 30335 )

      That's OK.

      In a few years what'll happen is Disney will own it all and you'll be paying $200+/month to stream.

      The whole point was that streaming offered a la carte service - you paid for what you wanted, and that's it. Now everyone wants it bundled together again, where you have dozens of services you don't want.

      And the whole point is to pay more - the lure of cheaper bills was just a hook to get people used to the fact they're not paying more per month than with cable just to get what they already had

    • by antdude ( 79039 )

      Now, we need a bundle service that can do all, legally, and cheap. :P

  • by rsilvergun ( 571051 ) on Wednesday February 08, 2023 @09:48PM (#63277027)
    while paying our shareholders handsomely [cnn.com] but hey, it's all good.

    This isn't about profit or loss. This is about Jerome Powell. Disney, like every multi-national, wants lower interest rates, and Powell won't lower rates until get gets blood [usatoday.com].

    He's trying (and so far failing) to engineer a recession. And we've been doing it since at least 1997. [youtube.com]

    It's a scary thought though. Too scary for most people to face head on. Which is why we're still dancing this Charleston after 2 1/2 decades or more.
    • Their Star Wars series were generally pretty decent.

      I thought they had a fairly clever pattern going with their Star Wars / Marvel miniseries releasing new episodes every week.

      However, they had really high production values and were probably damn expensive to make. I'm hoping they figure out it's more money if they license them out after a while.

    • by thegarbz ( 1787294 ) on Thursday February 09, 2023 @09:09AM (#63278121)

      He's trying (and so far failing) to engineer a recession.

      Jesus fucking Christ you won't stop with this nonsense will you. Faking the moon landing makes more sense than anyone (including business, government, or people) wanting a recession.

      No one is trying to engineer something that would be of benefit to no one. Just stop it already and get your mental health checked.

  • When we have all these workers who can take the blame for our fuckups.

  • Maybe, instead of having to subscribe to a multitude of separate services, people could pay one price for everything. They wouldn't have to jump from location to location, instead going to one centralized point where they could see everything.

    Has anyone thought of this?

  • ... exceeded projections of 78 cents.

    I can understand corporations shrinking their product mix ahead of bad news, which most of the tech-orientated companies are doing at the moment. Here, Disney is not explaining how they will "control costs" of non-profitable subsidiaries: Losing customers is unlikely to be a long-term trend.

    This is rich people demanding more money from a business that is doing well: Hmm, inflation is 'hurting' them so they're spreading the pain by demanding compensation from their 'servants'. (The point of corporation

  • An awful lot of vitriol spewing forth. Here's wishing the best to the employees that lost their job and their families. Hopefully, they won't have too much trouble finding employment. Try to be inclusive. Get called "abusive". Aren't down with misogyny? Can't afford to feed your progeny.
  • by Eunomion ( 8640039 ) on Thursday February 09, 2023 @02:25AM (#63277627)
    Why in the actual fuck do I have to say that? It should just be obvious.
  • Disney cut almost 20,000 jobs in 2020, then cut 10k more in 2021. Then they hired a whopping 30,000 employees in 2022, despite having a fairly normal year of revenue growth. That sudden huge influx of employees meant layoffs were inevitable.

    All of these layoffs are happening because a large number of companies went on a crazy hiring spree in 2022. This wasnâ(TM)t just a problem with large, pulbic companies, this was also a problem with small private companies as well. I expect to see even more layoffs

    • Ok, but WHY did they all do the same apparently foolish thing? Did they think pandemic rebound would last forever and up and up? Or what?

  • I signed up for Disney Plus, binged the latest season of The Orville, saw little else of interest on the channel, cancelled my subscription. I did the same thing with Netflix: signed up, caught up on a few things, pulled the plug.

    I'm not going to pay for a service that lacks compelling content.

    ...laura

  • freude.

Crazee Edeee, his prices are INSANE!!!

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