The Mouse House is planning to cut 7,000 jobs after news that its streaming service Disney+ is hemorrhaging subscribers. Disney CEO Bob Iger announced on Wednesday that the effort is part of a $5.5 billion cost-saving measure.
“I do not make this decision lightly,” Iger said on a conference call with investors. He also said that restoring profitability to Disney’s streaming services was his “number one priority.”
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Disney recently announced its first quarterly decrease in Disney+ subscribers since the service launched in 2019. The loss of around 2.4 million subscribers reportedly cost the company an estimated $1 billion. The company’s workforce is expected to shrink by almost four percent as a result of the restructuring. It is Disney’s third restructuring in the past five years.
The announcement comes as Florida Governor Ron DeSantis plans to take control over Disney’s previously self-governing district near Orlando. The Florida legislature moved this week to end Disney’s autonomous control over the district and dissolve the district board that the company previously appointed. Under the proposed law, the board will be handpicked by the Florida governor.
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“Disney is no longer going to have self-government. They’re not going to have their own government. Disney is gonna pay their fair share of taxes and honor their debts. And that’s exactly what this proposed piece of legislation will do,” DeSantis said at a press conference.
The bill would also prevent anyone with three years of “theme park experience” from serving on the board, prohibiting anyone with ties to the Disney Company from sneaking their way on in the future.
“A lot of folks in the media were saying that, ‘Oh my gosh, Disney’s actually going to pay less taxes and Floridians are going to pay more taxes.’ They were saying that, and I’m like, ‘You’ve got to be kidding me.’”
Disney currently owes over $700 million in unsecured debts. The bill ensures that Disney alone is responsible for paying them, not taxpayers.
“Well, this puts that to bed and so those debts will be honored… This is now obviously going to be controlled by the state of Florida. There’s a new sheriff in town.”
“Florida is dissolving the Corporate Kingdom and beginning a new era of accountability and transparency… These actions ensure a state-controlled district accountable to the people instead of a corporate-controlled kingdom,” DeSantis press secretary Bryan Griffin told Florida Jolt.
Florida Legislature Prepares to End Disney’s Self Governing Status
Critics of The Walt Disney company say that the once family-oriented entertainment giant has leaned too far into progressive activism. Under the previous CEO, Bob Chapek, the company was outspoken against Florida’s ‘Parental Rights in Education’ bill, which prohibits teachings on gender and sexuality in kindergarten-through-third grade classrooms.
Disney’s ailing streaming service, the focus of the latest restructuring, has also come under fire for inserting leftist agenda items into its content. Recent episodes from its show The Proud Family encouraged Black Lives Matter activism and included a musical routine about America being a white supremacist country ‘built by slaves.’
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Based on what’s been reported in media, it sounds like most of the Disney layoffs are going to affect the entertainment division and ESPN — not theme park jobs in FL. Let’s hope Disney will one day refocus on what made its brand legendary; family friendly entertainment. https://t.co/SbrxIA5elf
— Christina Pushaw 🐊 🇺🇸 (@ChristinaPushaw) February 9, 2023
DeSantis aide Christina Pushaw reacted to the layoffs on Twitter,
“Let’s hope Disney will one day refocus on what made its brand legendary; family-friendly entertainment.”
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