Disney Plans to Cut 1,000 Jobs Amid Cost-Cutting Measures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Job Cuts Announcement: Disney is planning to cut up to 1,000 jobs as part of its ongoing efforts to streamline operations in response to declining box office revenues and increasing competition in the streaming sector, building on the 8,000 layoffs made since the transformation began in 2022, indicating a persistent focus on cost management.
- Market Reaction: Despite the job cut news, Disney's stock showed little change ahead of market open, but this announcement could influence investor expectations regarding the company's future profitability, especially with new CEO Josh D'Amaro set to reveal his priorities soon.
- New CEO's Strategic Direction: Having taken over just a month ago, D'Amaro is expected to push for quicker and more efficient collaboration across divisions, which could impact the company's overall operational efficiency and market competitiveness in the face of current economic uncertainties.
- Industry Challenges: With consumer spending weakening and economic uncertainty rising, Disney faces challenges that extend beyond internal restructuring, as external market conditions may have profound implications for its long-term growth strategy.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 99.790
Low
123.00
Averages
137.29
High
152.00
Current: 99.790
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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