Disney Will Lay Off 7K Workers As Earnings Show Some Improvement, Despite Billions In Losses

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The company lost $1.5 billion for the quarter, a small improvement from the previous three months. But in order to cut costs, Disney will fire about 7,000 employees.

The Walt Disney Co. has a way with words. In a recent letter to shareholders, the media giant said its past year has been “dynamic,” which is a bit like saying Mt. Everest is “undersized.”

In truth, Disney has suffered staggering losses in its streaming platforms , has witnessed the theatrical market for its animated films evaporate,just weeks after extending his contract, and even with a recent rebound has seen its collapsing stock price cost investors some $80 billion. Now, with Bob Iger back at the helm again as CEO, it’s time to see if Disney can become the star of its owncomeback story. Iger presented Disney’s quarterly earnings report on Wednesday, his first since early 2020.Disney's income was better than expected, thanks to strong returns from its theme parks.Its combined streaming losses are approaching $10 billion, and the company didn't record as many subscribers as anticipated.In order to cut costs, Disney will fire about 7,000 employees.

"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," Iger said in a statement.

 

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