Disney CEO Bob Iger announced the layoffs during a Feb. 8 earnings call, alongside a mass restructuring plan. While most of the 7,000 employees to be terminated are part of the DMED, the layoffs could impact the entire company at large. The head of the entertainment giant said the layoffs would save the company $5.5 billion.
The Disney Media and Entertainment Distribution (DMED) team dating from his predecessor Bob Chapek's term would be dismantled, he said. DMED had been helmed by its former chair Kareem Daniel, who left Disney when Iger returned to the company in November 2022.
The soon-to-be abolished division "had oversight of everything from ad sales for Disney content and Disney+, distribution, operations and tech, and called the shots on how content was released," according to IndieWire. However, DMED's overarching authority removed power from the creative teams – something Iger vowed to restore.
In its place, a new division – Disney Entertainment – will be established. This new division will bring together Disney Studios, General Entertainment, Animation, Disney+, 20th Century Studios, Searchlight and Hulu under one umbrella. Incumbent Disney General Entertainment Chairwoman Dana Walden and Disney Studios Chairman Alan Bergman will helm the new division as co-chairs.
During the earnings call, Iger explained that the new division "will have oversight in the content Disney makes, how it is distributed and monetized and how it is marketed." He also commented that the former structure under Chapek "severed that link."
The Disney CEO cited a twofold reason for the reorganization. First, it served to empower the storytelling and creativity that fuels the company founded by brothers Roy and Walt Disney in 1923. Second, it sought to make teams accountable for the content's financial performance.
According to Iger, Disney increased its revenue in the direct-to-consumer section to $5.3 billion in the first quarter of financial year 2023. However, it still incurred a loss of $1.05 billion in that division. The loss was attributed to the departure of 2.4 million Disney+ subscribers worldwide over the past four months. (Related: Disney is on the verge of financial collapse, leaked memo reveals.)
Breitbart's John Nolte put in his two cents about Iger's plans to lay off Disney employees and restructure the company in a Feb. 9 op-ed. He pointed out that the streaming service's growth "has stalled out" domestically even though it is only a little over two years old.
"That obviously isn't happening, which is why Iger is panicking with massive layoffs, consolidations and cost-cutting," Nolte wrote.
"We all know what's happening here: The grooming chickens are coming home to roost. No decent parent feels safe leaving their child alone with Disney+, which has become a streaming service full of racism, adult sexuality and pro-mutilation propaganda."
Nolte also mentioned the poor performance of two animated features from Disney – "Lightyear" and "Strange World" – as another reason for Disney's losses.
Both movies "bombed at the box office due to Disney’s obscene decision to include homosexual plots," he said. "These are features aimed at children and no parent wants to exit a theater forced to discuss alternate sexual lifestyles with their five-year-old."
The Breitbart senior writer branded Disney as a "child predator," comparing it to "the entertainment equivalent of a creepy guy in a park holding a lollipop and wearing nothing but a raincoat."
"I wouldn't let Disney near my kids, and the only way this evil stops is through market pressure. If I were king, any parent who subscribed to Disney+ would receive a visit from social services. You are supposed to protect your child's innocence, not betray it with Disney's woke porn."
Watch this clip from the "Rudyk Report" that discusses Disney's termination of 7,000 employees.
This video is from the Rudyk Report channel on Brighteon.com.