Disney Begins 7000 Job Cuts After String Of Theatrical Failures
Disney has finally hit the financial wall after a long string of money losing theatrical and streaming service failures, with the company committing last month to at least 7000 job cuts to help cover a $5.5 billion total savings target. The move followed the abrupt replacement of former CEO Bob Chapek and the return of Bob Iger, and has been blamed on “macroeconomic headwinds.”
Those layoffs are being initiated in March, with the bulk of pink slips expected to be handed out in April as new details of the mass firings emerge. Already, Marvel Studios VFX head and notorious woke promoter Victoria Alonzo has abruptly left the company, indicating that layoffs may extend to management.
Disney has made little mention of the role their “diversity and inclusion” methodology might have played in plummeting audience numbers both for theatrical releases and streaming subscriptions. Disney+ lost over 2.4 million subscribers in February, while movies like Lightyear, Strange Worlds, Pinocchio and Ant Man 3 have all flopped at the box office in the past year. Pending releases including live action adaptations of The Little Mermaid and Peter Pan are heavily injected with identity politics and audience reactions to trailers are so far extremely negative, hinting that these films will also have a dismal showing.
Beyond the lack of interest in woke movies and media, the company seems to be reeling from its catastrophic attempt to use economic leverage to intimidate the State of Florida as it passed the ‘Parental Rights In Education Act’, which was designed to stop sexualized lessons in public schools for children in grades K-3. The bill was specifically motivated by the proliferation of gender identity ideology within Florida classrooms and was attacked by Democrat opponents who called it the “don’t say gay bill.”
It has become clear that Disney backed the wrong horse in that fight. They have now lost their special autonomy under the Reedy Creek Improvement District and the Florida government has taken over management. The majority of major media companies in the US are scrambling to survive dwindling profits and collapsing audiences, but many would argue that Disney in particular triggered their own downfall.
Disney stock was up slightly on the news that layoffs would begin, with investors happy to see costs being reduced.