Despite good business in the past quarter, entertainment giant Walt Disney is planning major staff cuts. About 7,000 jobs – about three percent of the global workforce – will be cut under a program that aims to reduce annual costs by $5.5 billion. Disney boss Bob Iger announced this on Wednesday evening. Investors allowed the share to rise about eight percent in aftermarket trading.
In view of “global economic challenges”, Iger announced a major restructuring of the group. Disney recently earned better than expected: in the three months to the end of December, profit increased by eleven percent on an annual basis to 1.3 billion dollars (1.2 billion euros). Sales grew 8 percent to $23.5 billion. Disney beat Wall Street pundits’ forecasts.
However, the group lost subscribers to its main streaming service Disney + after sharp price increases. At the end of the quarter, the video service that competes with Netflix had 161.8 million users worldwide – more than one percent less than three months earlier. Disney’s other streaming services, Hulu and ESPN+, made modest gains. In addition, the division’s loss of $1.1 billion was lower than feared. In the previous quarter, the minus was $1.5 billion. (sda/dpa)
Soource :Watson

I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.