New Delhi: Global recession has had the biggest impact on the job sector, as people are not getting new jobs fast, while companies are laying off their employees. After Amazon, Meta, now Disney has once again announced the removal of 4,000 employees. For this, the manager has been asked by the company to prepare a list.
According to reports, Disney is looking to restructure the organization and work on reducing the budget. The company has asked its management to identify candidates for the proposed layoffs in April. However, it is not yet clear from which specific department the retrenchment will take place. The planned job cuts were announced on April 3 ahead of Disney’s annual meeting.
What does the company report say?
According to its 2021-22 annual report, the Disney Group employed 190,000 people worldwide as of October 2 of that year, 80 percent of whom were full-time employees. The Walt Disney-founded company also said its streaming service saw its first decline in subscribers last quarter as customers cut back on spending. Subscribers to Netflix’s streaming archive Disney fell one percent to 168.1 million subscribers as of Dec. 31 from three months earlier. Analysts had largely expected a decline, and Disney shares were up eight percent in after-session trading. Investors were reassured by a smaller-than-expected operating loss for Disney’s streaming platform in the October-to-December period. Disney Group saw revenue of $23.5 billion for the three-month period, which was better than analysts expected.
The company is working on Plan-B
Iger, who stepped down as CEO in 2020 after leading the company for nearly two decades, was brought back after the board of directors ousted his replacement, Bob Chapek. Frustrated with his ability to rein in spending. Iger’s new term as CEO faces major challenges, with activist investor Nelson Petz demanding a major cost-cutting campaign after Disney overpaid to buy the 20th Century Fox film studio. Let us tell you that the company is now working on plan B. According to the company, it is again in the process of restructuring. So that expenses and earnings can be brought back to previous levels.