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Disney will lay off 7,000 employees this week, what is the reason?

With this downsizing, the challenge for Disney is to turn a profit from the company’s broadcast television business, which posted millions of dollars in losses in the December-ending quarter.

Photo: Courtesy of Walt Disney World Resort

The Walt Disney Company announced that this week it will begin, in phases, laying off 7,000 employees as part of a cost-cutting plan aimed at making operations about $5.5 billion cheaper.

CEO of the company, Bob IgerAnd she confirmed in a message to her employees, which was echoed by many specialized media outlets, that she will start this week informing the affected employees of the procedure. A second group of workers will be notified in April and the latest layoffs will be announced at the beginning of the summer.

“We have made the difficult decision to reduce our global headcount by approximately 7,000 jobs as part of the company’s strategic realignment, which includes significant cost-saving measures necessary to create a more efficient, streamlined and streamlined approach to our business,” Pope wrote. . iger.

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Disney announced the layoffs to coincide with its quarterly results, reporting a loss of 2.4 million subscribers to its Disney+ streaming service.

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Disney is closing its metaverse division as part of the sale

According to The Wall Street Journal, Disney will shut down its metaverse division after the layoffs begin About 3% of its employees. This department, which used to employ fifty people, was abolished and its employees were dismissed, except for its manager. Mike WittAccording to the newspaper, which quoted sources familiar with the situation.

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From this department, created a year ago, it was sought to develop strategies in the virtual world aimed at creating new offers for consumers. According to the American newspaper, Disney’s plans for a metaverse strategy are not yet completethough the company has hinted that the new technology could have applications in fantasy sports, theme park attractions, and other consumer experiences.

Disney announced the layoffs in conjunction with its quarterly results, reporting a loss of 2.4 million subscribers to its Disney+ streaming service. So, The company is withdrawing from the race on the metaverseso far it’s been controlled by Meta (the old Facebook), which for its part hasn’t just made this resolute commitment to virtual reality profitable.

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