Walt Disney Co (DIS.US) in February announced a series of organizational changes and cost-cutting plans. Disney stated that it will lay off 7,000 workers by the end of this year. First round of layoffs already took place at the end of March 27 2023. And today Disney announced a second round of layoffs. The job cuts will occur across the company’s business segments and locations. The layoffs are coming from all of Disney’s divisions across the country including its headquarters in Burbank and Connecticut, where its ESPN sports networks are based. The hourly workers at Disney’s theme parks won’t be affected
The third round of cuts is expected before the beginning of summer. Wall Street's focus on the staggering cost of operating online video platforms has shifted attention away from subscriber growth. It is expected that "several thousands" employees will lose their jobs by Thursday, taking the total number of job losses so far to around 4,000.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appAccording to the CEO, Bob Iger, the company is targeting $5.5 billion of cost savings. First, reductions to the company's non-content costs will total roughly $2.5 billion, not adjusted for inflation. Another $1 billion of savings is already underway after the first round of layoffs announced already this year.
Walt Disney Co.'s (DIS.US) stock price has been on an uptrend since the beginning of the year, currently trading at $99.3. During the post-COVID rally, the company's stock price reached around $200, which represents a decline of approximately 50% from the current price level.
There is a significant support level at $91.14, which has been tested multiple times in the past. On the upside, there are two significant resistance levels to watch for at $107.3 and $113.9. A break above these levels could signal further upward momentum in the stock price. However, taking into account current market conditions, also a retest of $91.14 is possible. Investors should pay close attention to the upcoming earnings results on May 10.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
