The Walt Disney Company is planning an additional $2 billion in spending cuts in the months ahead –the latest sign of continued dark times for the once-formidable company, which is struggling with spiraling costs, an unprecedented string of box-office flops, and self-inflicted brand damage resulting from ill-advised culture wars.
Disney announced the cuts late Wednesday during its quarterly earnings call, saying the goal is reach a total of $7.5 billion in overall savings.
The bad news comes after Disney recently completed its largest round of layoffs in recent memory, shedding 7,000 jobs around the world.
CEO Bob Iger is facing a dire financial situation as Disney’ stock has been trading below $100 in the past six months. Like other legacy studios, the company must contend with the slow but certain demise of cable TV, which has long been a cash cow.
Disney is rumored to be mulling selling off some of its most prized TV properties, including ESPN and even ABC.
But Disney and others still haven’t figured out how to make streaming entertainment profitable. Disney has lost more than $10 billion on its streaming services since 2019.
On Wednesday, Disney reported its streaming entertainment services lost $420 million for the most recent quarter. The coming cost cuts helped boost Disney shares late Wednesday to around $90, though the stock is still way off its highs of close to $200 less than two years ago.
The non-stop parade of negative news has clearly taken a toll on Iger, who was heralded as a savior upon his return to Disney a year ago. Now, he has reportedly become “overwhelmed and exhausted” from the difficulties of rebuilding his company amid its string of losses.
Disney can expect even more bad news in the days ahead.
The Marvels, starring Brie Larson, is tracking to be Marvel Studio’s biggest flops in years.
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