FT News Briefing Disney to axe 7,000 jobs
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Feb 9, 2023 Disney is cutting 7,000 jobs in a bold $5.5 billion cost-reduction plan, stirring mixed reactions in the market. An activist investor is pressuring Disney for strategic changes, including board adjustments. Meanwhile, Microsoft faces regulatory hurdles in its $75 billion bid for Activision Blizzard, raising concerns about competition in the gaming sector. The discussion shifts to the Rothschild family, contemplating taking their investment bank private, highlighting significant shifts in corporate strategy.
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Disney's Cost-Cutting Plan
- Disney CEO Bob Iger announced 7,000 job cuts during his first earnings call since returning.
- This cost-cutting measure aims to save the company $5.5 billion and address investor concerns about streaming losses.
Peltz vs. Iger
- Activist investor Nelson Peltz is criticizing Disney's costs and demanding a board seat and dividend reinstatement.
- Iger responded by saying Disney will likely reinstate a modest dividend by the end of 2023.
UK Regulators Challenge Microsoft-Activision Deal
- The UK's Competition and Markets Authority (CMA) stated that Microsoft's acquisition of Activision Blizzard could harm UK gamers.
- They suggested higher prices, fewer choices, and less innovation would result from the merger.