Disney to Cut $3 Billion in Content Costs – Deadline

Disney to Cut $3 Billion in Content Costs – Deadline

Walt disney targets $5.5 billion in savings, including $3 billion in non-sports content, CEO says Bob Iger said today on a hearty post-earnings call where he detailed a company-wide restructuring.

He said the remaining $2.5 billion are general operating costs, of which $1 billion is already underway.

Disney is the latest conglom to wield the ax on content giant Warner Bros. Discovery one down as challenges mount for streaming, advertising and stock prices. Rampant spending on new content for streaming has not been matched by the industry’s financial results or earnings trajectory. That said, Disney’s DTC losses narrowed last quarter.

The CEO of Warner Bros. Discovery’s David Zaslav promised investors $3.5 billion in cost cuts.

CFO Christine McCarthy, speaking later on the call, said non-content costs were 50% marketing, 30% labor and 20% technology, sourcing and other expenses. One billion was included in the forecast for the last quarter. This year, he will make savings in distribution, marketing and headcount at DMED, the closed division of Disney Media and Entertainent Distribution. The rest of the savings will materialize by 2024.

Disney announced today that it is laying off 7,000 employees.

McCarthy didn’t specify savings on content spending, but said it was $3 billion, annualized, outside of sports.

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