Disney plans to cut 7,000 jobs and reward shareholders

[Xolodno]

https://www.cnn.com/2023/02/08/business/disney-earnings/index.html


Disney became the latest company to report deep job cuts, as it said it would cut 7,000 jobs from its global workforce.

Disney had about 220,000 workers as of October 1, of which approximately 166,000 were employed in the United States. A cut of 7,000 jobs represents about 3% of its global workforce.

“While this is necessary to address the challenges we’re facing today, I do not make this decision lightly,” said CEO Bob Iger, who returned to lead the company in November when the board fired Bob Chapek as the company’s leader. “I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I’m mindful of the personal impact of these changes.”

[MichMan]

1. 3 percent of their total workforce

[lpbk2713]

2. "... necessary to address the challenges we're facing today" my ass.

It's time for upper management to get another big fat bonus. And this is where it's coming from.

[Xolodno]

3. The interesting part...

...Disney does not pay well. And I don't mean the cast members at the theme parks, that's a given. I'm talking low and middle management people.

I've interviewed with them a few times, when it comes to pay, we are miles apart and so I decline. I interviewed for a spot prior to Iger coming back, they were offering 30k less than I was currently making and would have to be in the office every single day.

What gets me, they ask for very heavily skilled people, but don't pay what they are worth. And for the life of me, I don't understand why people jump at the chance to work for them when they could get better pay elsewhere.

[Johonny]

5. This

I was generally shocked how crappy Disney pays. The people I know that worked for them did so because of the lure of the name.

Either way, they're business is exactly hurting compared to pre-pandemic era. They've lost their dividend and their PE still sucks. They're a long way from recovered. Streaming as not paid off as they predicted it would. The days when Disney could do no wrong seem over and in this case Iger really did need to do something. He needs to do a lot of things.

[WarGamer]

4. Just FYI

63% of Disney is owned by institutions.

These include mutual funds and State pension funds.

If you have a 401k or IRA with mutual funds or an ETF... you might benefit from a healthy stock price.

If you are a retired State employee, you might benefit from strong stock prices.

For as much as people love to bash "big corporations", a huge % of Americans own them directly, indirectly or would be affected by dropping stock prices. For example, the State of California has to raid the General Fund in years that the stock market is down to pay for CALPRS, the State retirement fund.

When the State is in dire financial straits, they can reduce benefits, raise taxes and fees to compensate.

One way or another... stock prices affect most everyone.

[Xolodno]

7. I also own a bit of Disney stock.

As a side investment in addition to my 401k and pension.

It often performs well and a well diversified entertainment company, so I benefit from a better price. However, I do think many of the execs are over paid. And that money should go more to the rank and file employee's. Seriously, 60k max for an Insurance Product Manager when the insurance industry pays 80k to 120k?

Thanks, but no thanks.