Disney Loses Over Two Million Streaming Subscribers, Lays Off 7,000

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Disney’s streaming service, “Disney+,” lost 2.4 million subscribers and the company announced a massive restructuring, an earnings report released on Wednesday revealed.

The company claims their streaming service, which launched in 2019, lost 2.4 million subscribers. This total is not as severe as some analysts expected, as the streamer recently raised the price of its monthly subscription from $7.99 to $10.99, and were expected to lose more than three million subscribers, according to CNBC.

Disney also announced a massive restructuring which will seek to cut $5.5 billion in expenses and will result in 7,000 employee layoffs, Variety reported. The restructuring will reorganize Disney into three lanes: Entertainment, ESPN, and Parks, Experiences, and Products.

Disney experienced a direct-to-consumer operating loss of $1.05 billion over the quarter, the outlet noted. The Disney theme parks saw a revenue of $8.7 billion, which was a 21% increase when compared to the beginning of the quarter. Disney saw growth in revenue from both their international and domestic parks, noting that guests spent more at parks this quarter.

Bog Iger, back at the helm as Disney’s CEO, plans on reorienting the company’s focus towards cost-cutting.

“We believe the work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders,” Iger said in a statement, CNBC reported.