Disney, like many other big companies right now, is starting its pruning process. It has been reported that the company has disbanded its metaverse strategies unit, a roughly 50-person task force and is expected to abolish more than 7,000 other jobs in the next few months. Along with job cuts, the CEO, who is only on a two-year deal, is attempting to also shave roughly $3 billion on what it spends on produced and licensed content outside of live sports programming.
The underlying expectation of this article is that Disney is working its way toward increasing its stock. As well as resuming the semi-annual dividend distributions that it suspended at the onset of the pandemic three years ago. It was take a few years, and the turn around will not be quick, but its current decisions to lay workers off should not worry its stockholders.
Link: https://www.fool.com/investing/2023/03/28/stop-worrying-about-disney-layoffs/
Unfortunately with how hard Disney was hit during the pandemic it makes sense that they're still dealing with the effects. It sucks that these layoffs are almost inevitable for Disney to get back to the money they were making but you wonder how many more people have to lose their jobs for the higher ups at Disney to increase their profits.
ReplyDeleteDisney was likely one of the most severely impacted companies when the pandemic hit so it makes sense that they are still feeling significant effects. I wonder how long it will be until Disney is able to return to its former status.
ReplyDeleteThat is crazy how many jobs they are cutting, but it makes sense with everything that is going on with the economy since the pandemic. Their in person experience was cut for almost 2 years, and that made them a lot of money that they lost. Unfortunate but they can't afford to keep paying these employees.
ReplyDeleteI remember during covid Disney was very impacted because no one could go to amusement parks. This makes me sad to hear they still haven't fully recovered yet and are having to cut jobs because of it. I hope they bounce back and become a strong company post-covid in these next upcoming years.
ReplyDeleteWhat are some of Disney's products/services that they would be able to shave off completely...to be worth $3 billion?
ReplyDeleteIt's never easy to hear about job losses, therefore it's essential that companies take their workers' welfare into account when making strategic choices. I hope that Disney increases its stock in a manner that is both accountable to and sustainable for all persons affected.
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