The Walt Disney Company (DIS) announced their earnings for the first quarter on Wednesday, with results surpassing the expectations of analysts. CEO Bob Iger took part in the earnings call, providing updates on the entertainment giant. During the quarter, Disney reported an 8% year-over-year increase in revenue, reaching $23.51 billion. Meanwhile, its direct-to-consumer business generated $5.3 billion in first-quarter revenue, marking a 13% increase year-over-year.
Bob Iger, CEO of The Walt Disney Company, also announced a restructuring plan which involves cutting 7,000 jobs, approximately 3% of the company's workforce, with the aim of saving $5.5 billion over the next few years. This move is expected to revive the company's creative output and make its streaming business profitable.
Why it matters
Investors have been eagerly anticipating Iger's strategic plan for the company since his unexpected reappointment in November. In his statement, Iger expressed that Disney is embarking on a significant transformation that will lead to sustained growth and profitability in their streaming operations. Disney shares jumped as much as 9 per cent in after-hours trading following the announcement.