When Bob Iger suddenly returned to the helm of Disney a few months ago, replacing (his chosen one) Bob Shipek, most suspected another sensational move, i.e. an acquisition from those who created an entertainment group in the previous decade. Of course, this cannot be ruled out, but so far all that has been announced is… layoffs. As it became known, about seven thousand, which corresponds to 3.2% of the total number of employees (about 220,000) of Disney in the four corners of the globe.

As you know, when there are layoffs, especially such large ones, some financial indicators rush down, for Disney, which has long been trying to appease Wall Street about its exorbitant expenses, this situation was rather borderline. The goal is to cut labor costs, combined with more cautious steps in content production, to save the company about $5.5 billion by the end of 2024.

“We are going to scrutinize everything we do because everything has become more expensive in a more competitive world. We believe that the work we are doing to transform the company with a focus on creativity while lowering costs will lead to sustainable growth and profitability for our streaming service, and help us better weather future global economic changes,” said Iger.

The mention of the Disney + platform is not accidental. In the last quarter of 2022, the latter lost 2.4 million subscribers, showing losses for the first time since its inception, at the end of 2020. The problem seems to be mainly in the Indian and Southeast Asian market. where Disney recently lost the rights to the National Cricket League and all those subscribers along with it. This is of course a relatively minor issue for Disney+, which has been operating more or less like a hole in a barrel for two years now, which the company continues to fund in an effort to increase its share of the streaming market.

Last December alone, the subscription to the service in America increased from $7.99 per month to $10.99 per month, although a cheaper ad-packed package is now available. On the other hand, the cost increase we mentioned above makes Disney+’s profitability target by the end of 2024 too ambitious. . What will competitors do?