Disney CEO Bob Iger announced some shocking news during the quarterly earnings call that took place earlier this evening. Since returning to his position as CEO, the pressure has been building as the public eagerly waited to see how his earnings would shape up. Lots of pressure has been mounting on Iger, and this call was his first significant chance to share with the world his plan to improve Disney’s financial siutuation.
Disney CEO Bob Iger Announces His Plan to Save Company Money
Iger does have a plan to save money, but it will cost his company massively.
On the call, Iger explains, “In that regard we are targeting $5.5 billion in cost savings across the company, First, reductions to our noncontent costs total roughly $2.5 billion, not adjusted for inflation. $1 billion in savings is already underway and Christine will provide more details. But in general, the savings will come from the reductions and as GNA and other operating costs across the company.”
The fear of many Disney fans was that Iger would recoup Disney’s monetary losses by laying off Disney Employees. Many fans of Disney Parks and Resorts notice that they seem incredibly understaffed these days. The employee shortage has been further exacerbated by the current protests from employees who are demanding higher wages.
In the call, Iger announced his devastating plan to fire approximately 7,000 current Disney employees. He explained, “To help achieve this, we will be reducing our workforce by approximately 7,000 jobs, while this is necessary to address the challenges we are facing today, I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide and mindful of the personal impact of these changes.”
Related: Iger Reveals Surprising List of Future Disney Sequels
Employees and Fans Express Disappointment for Iger’s Decision
While it was clear that cost-cutting decisions needed to be made to protect the company, this news is a devastating solution for current Cast Members and their supporters. The public is eager to know where these job cuts will be from and what areas of the company will be affected the most.
One thing is clear: Bob Iger has returning to his role as CEO with full force and he is willing to do anything he can to help his company survive.
Related: A NEW ‘Avatar’ Experience Is Coming to This Disney Park