Shulou(Shulou.com)11/24 Report--

Disney announced Wednesday that it would lay off 7000 people worldwide, or about 3 percent of its global workforce, as part of a $5.5 billion cost-cutting plan announced Wednesday.

Disney CEO Bob Iger said in a statement that the company is undergoing a "significant transformation" that management believes will improve the profitability of the company's streaming business.

Disney is just the latest company to begin mass layoffs, especially at tech companies, with Amazon, Twitter, Microsoft, Meta and Google all laying off thousands of employees in recent months.

The announcement of mass layoffs comes after Disney reported better-than-expected results for the first quarter of fiscal 2023. Revenue rose 8 percent year-on-year to $23.512 billion in the quarter, slightly higher than the $23.4 billion estimate by analysts surveyed by Refinitiv, the earnings report showed. Among them, park, experience and product business revenue was US $8.74 billion, up 21% year-on-year

In the first quarter of fiscal 2023, the company earned $1.28 billion, compared with net income of $1.1 billion in the same period last year; adjusted earnings per share were $0.99, although slightly lower than $1.06 in the same period last year, but far better than expectations of $0.78.

Disney + had 161.8 million subscribers at the end of the first quarter, down 1% since October 1, 2022. Disney said Disney + subscribers declined for the first time, but its profitability improved.

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