Disney, the world’s largest entertainment company, announced massive layoffs as part of its reorganization. The company is looking to become more efficient and focus on what generates greater profitability in the face of a challenging technological world with more competition and more demand from users.
CEO Bob Iger said that the reorganization will result in a more profitable company, and that Disney is committed to operating efficiently in this difficult environment. The restructuring will include 7,000 layoffs, estimated savings of $5.5 billion, investment cuts of $2.5 billion in non-content items and a savings plan of $1 billion recently launched.
The plan is divided into three parts: a reorganization of the entertainment unit, which includes film, television and entertainment; a sports-focused unit led by ESPN; and a restructuring of investments in parks, experiences and products of the Disney world.
The changes come after Disney has already made two major changes in the last five years, in 2018 to accelerate the growth of the transmission business, and in 2020 to stimulate streaming growth worldwide.
Some analysts believe that Disney executives are trying to stay ahead of the competition for subscribers, such as Netflix, after the company lost more than $1 billion due to massive subscriber outflows.
In conclusion, Disney’s restructuring is an effort to remain competitive in the challenging technological world, and to focus on what generates greater profitability. The company is committed to operating efficiently and has already made three major changes in the last five years.