Disney seeks to cut additional $2 billion in costs after outperforming revenue estimates

BURBANK, Calif. – The Walt Disney Company reportedly plans to cut an additional $2 billion in costs after outperforming their fourth-quarter estimates.

Disney’s stock value increased by as much as 7.5% on Thursday after the company announced their intentions to cut an annual total of $7.5 billion by the end of 2023, compared to their original $5.5 billion estimate in February.

Along with cost cuts, the company has laid off 7,000 employees, as CEO Bob Iger faces conflicts with billionaire investor Nelson Peltz.

Peltz has argued that Disney’s costs are too high and that the board should consider reimplementing dividend payments as well as form a clear plan for leadership succession.

Disney’s theme parks helped with the recent increase in revenue.

The company also hopes to soon turn a profit on some of their streaming services, such as ESPN+, while the losses narrowed to just $387 million in the previous quarter.

Disney+ subscriptions also exceeded expectations, rising to more than 150.2 million total subscribers, rather than the predicted 147.4 million.

The increase in revenue comes as Walt Disney World recently hiked prices for tickets, parking and food.

Gov. Ron DeSantis recently expressed how he has “moved on” from his feud with Disney for its promotion of left wing culture war issues.

“Apart from Florida, Disney has had a lot of problems and I think that the skirmish they got in with these young kids [K-3 Parental Rights bill] – I think that’s a symptom of why they’re not doing as well,” the governor said to CNBC. “Parents have lost some confidence.”

“Look – my wife and I, we got married at Disney World,” DeSantis went on. “So, it’s not like we’re opposed […] I would just say, go back to what you did.”

“But, where we are today – you know – we basically moved on,” he said. “They’re suing the state of Florida, they’re going to lose that lawsuit. So what I would say is, drop the lawsuit.”