The magic of Disney is facing a steep challenge as it plans to reduce its workforce within the TV division. Reports have emerged that The Walt Disney Company, under the guidance of CEO Bob Iger, will cut about 140 positions. This move represents a 2% reduction in staff at Disney Entertainment Television and a significant 13% cut at National Geographic, one of the most affected units.
The decision to reduce the workforce is part of Disney’s broader strategy to trim costs and reallocate resources to remain competitive. As consumers continue to shift away from traditional cable networks, Disney aims to bolster its presence in the highly competitive streaming market. This maneuver is not new for Disney; since Iger’s return in 2022, over 7,000 jobs have been cut to realign the company’s focus and investment towards streaming.
In the stock market, Disney’s shares saw a bit of sunshine, rising by about 1% in afternoon trading following the announcement. The company is slated to disclose its quarterly results next week, which will surely provide deeper insights into its financial health and strategic direction. However, Disney’s immediate response to these developments remains undisclosed.
The landscape of television and streaming continues to evolve, and Disney’s latest cost-cutting measures underscore its determination to stay ahead. As the industry morphs with changing consumer preferences, the House of Mouse is making bold moves to adapt and thrive in a digital-first world.
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Source: MarketScreener
