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On Wednesday, recently re-instated Disney CEO Bob Iger announced that the entertainment giant would be laying off 7,000 of its employees and undergo mass restructuring as it attempts to rebound from the last quarter of Fiscal Year 2022.
On the chopping block is Disney's Media and Entertainment Distribution team, a holdover from the era of Iger's predecessor Bob Chapek. The technology and product team, which oversaw the release of content on Disney+, is set to be dismantled entirely in favor of a replacement that puts creators back in the driver's seat.
According to IndieWire, Iger revealed during Wednesday's earnings report that in Q1 of FY2023, Disney increased its revenue in the direct-to-consumer sector to $5.3 billion, but still recorded losses of $1.05 billion in that division.
The loss, which still beat analysts' expectations, was due to the loss of 2.4 million Disney+ subscribers around the world who left the service during the past four months, as well as the 3.8 million subscribers who ditched Disney+ Hotstar in India after it lost the rights to IPL cricket.
Iger explained that he would be consolidating nearly all of Disney's entertainment divisions under one umbrella. The first step, he said, was the creation of Disney Entertainment, which will see Disney Studios, General Entertainment, Animation, Disney+, 20th Century Studios, Searchlight, and Hulu come together under the leadership of Dana Walden and Alan Bergman, who currently head General Entertainment and Studios, respectively. ESPN, the company's sports division, will remain independent.
According to Iger, the proposed cuts would save the company $5.5 billion. He suggested that the restructuring would also facilitate growth in the struggling direct-to-consumer sector.
Disney has come under fire lately over its descent into "wokeness," with many calling out the entertainment giant for pushing left-wing views in everything from children's cartoons to blockbuster movies.
On the chopping block is Disney's Media and Entertainment Distribution team, a holdover from the era of Iger's predecessor Bob Chapek. The technology and product team, which oversaw the release of content on Disney+, is set to be dismantled entirely in favor of a replacement that puts creators back in the driver's seat.
According to IndieWire, Iger revealed during Wednesday's earnings report that in Q1 of FY2023, Disney increased its revenue in the direct-to-consumer sector to $5.3 billion, but still recorded losses of $1.05 billion in that division.
The loss, which still beat analysts' expectations, was due to the loss of 2.4 million Disney+ subscribers around the world who left the service during the past four months, as well as the 3.8 million subscribers who ditched Disney+ Hotstar in India after it lost the rights to IPL cricket.
Iger explained that he would be consolidating nearly all of Disney's entertainment divisions under one umbrella. The first step, he said, was the creation of Disney Entertainment, which will see Disney Studios, General Entertainment, Animation, Disney+, 20th Century Studios, Searchlight, and Hulu come together under the leadership of Dana Walden and Alan Bergman, who currently head General Entertainment and Studios, respectively. ESPN, the company's sports division, will remain independent.
According to Iger, the proposed cuts would save the company $5.5 billion. He suggested that the restructuring would also facilitate growth in the struggling direct-to-consumer sector.
Disney has come under fire lately over its descent into "wokeness," with many calling out the entertainment giant for pushing left-wing views in everything from children's cartoons to blockbuster movies.
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