The Walt Disney Company is unable to avoid the tsunami of layoffs in technology companies and has announced the departure of 7,000 people, which translates into 3.6% of its total workforce worldwide. This decision is part of its cost reduction plan that will also affect its content.

This was announced by Bob Iger, the company's executive director, in a call with analysts to discuss the results of the first quarter of his fiscal year, in which he earned 1,279 million dollars (1,196.2 million euros), 16% more yoy As reported by the Bloomberg agency, the company's top executive also explained that the restructuring will save them 5.5 billion dollars (5.1 billion euros) in costs.

As part of the change, Disney's CEO also announced that the company will be reorganized into three divisions: an entertainment unit that includes its core film and television businesses, the sports networks ESPN, and the theme parks unit, which includes cruises and product stores.

Iger added that these changes are aimed at improving profit margins and are part of the transformation that the company has adopted in recent years and that includes strengthening its franchises and developing its online content platform.

Disney+, in losses
In the presentation of quarterly results, the company reported a loss of 2.4 million subscribers in its Disney+ streaming service and indicated that it shows losses, although it did not quantify them. Thus, within this sector, streaming content entered 5,300 million dollars (4,940 million euros) but had operating losses of 1,100 million dollars (1,025 million euros) due, above all, to the losses of Disney +.

The technology sector is immersed in a wave of layoffs and more and more companies are announcing job cuts. Only Amazon (18,000 layoffs), Microsoft (10,000) and Alphabet, Google's parent company, (12,000), have accumulated the layoffs of 40,000 employees so far this year. Also, Meta, the parent company of Facebook, announced 11,000 layoffs in November of last year, which affected 13% of its workforce.