Disney Cuts Costs

 

Disney says it is laying off several hundred more people around the world, with workers in its film, television and finance departments impacted. The entertainment giant has been under pressure as viewers move away from cable TV subscriptions in favour of streaming platforms. The latest job cuts follow major layoffs announced in 2023, when around 7,000 workers were let go as part of a drive by chief executive Bob Iger to save $5.5bn (£4.1bn). The cuts will impact multiple teams including marketing departments for its film and television units. Workers in Disney's casting and development and corporate finance departments will also be affected. "We have been surgical in our approach to minimise the number of impacted employees," said a spokesperson. The company also said that no teams will be closed down entirely. The California-based firm employs 233,000 workers, with just over 60,000 of those based outside the US. Disney owns a host of companies across the entertainment industry including Marvel, Hulu and ESPN. The firm reported stronger than expected earnings in May, with overall revenue of $23.6bn for the first three months of the year. That was a 7% increase from the same period in 2024. It said the growth was fuelled by new subscribers to its Disney+ streaming service.

BBQ - What could the impact be of the cost cutting done by Disney?

Disney Cut Costs

Egg-spensive Easter Eggs

Easter egg prices have surged by up to 56% compared to last year, according to a recent report by Which? This dramatic increase is attributed to a significant drop in global cocoa production, driven by higher temperatures affecting the quality and quantity of cocoa beans. As a result, many popular chocolate treats have not only become more expensive but have also shrunk in size, a phenomenon known as "shrinkflation". For example, an 80g pouch of Terry's chocolate orange mini eggs at Lidl has increased from 99p to £1.35 while shrinking to 70g. Despite these rising costs, consumers can still find good deals by looking for special offers, comparing prices per gram, or waiting until Easter Sunday when many eggs are likely to be discounted. The price of chocolate in the UK has risen by 16.5% in a year, compared to a 4.4% increase for supermarket food and drink overall. At Morrisons, a 200g Cadbury Creme Egg 5 Pack Mixed Chocolate Box increased from £2.62 last year to £4 this year. Similarly, a Twix white chocolate Easter egg at Tesco rose from £5 to £6 while shrinking from 316g to 258g, making it 47% more expensive per 100g. This trend is not limited to Easter eggs; other chocolate products have also seen significant price hikes. For instance, Asda's Fruit & Nut Milk Chocolate 200g bar increased by 73%, from £1.33 to £2.30.

Given these rising costs and shrinking sizes do you think this will impact sales of easter eggs?

Easter Egg Prices

Unilever Slashing Jobs

Unilever, one of the world’s largest consumer goods companies, has announced plans to cut a third of its office-based roles in Europe by the end of 2025. This decision comes after a global cost-cutting announcement in March, which will affect approximately 7,500 roles. About 3,200 jobs in Europe are expected to be axed as part of this plan. The company has begun a consultation process with those affected by the cuts. These changes are part of a broader effort to revive growth under CEO Hein Schumacher, who took over last year following a period of underperformance. Unilever also plans to split off its ice cream business, which includes brands like Wall’s, Ben & Jerry’s, and Magnum, as part of a strategy to “do fewer things better”. The company, which has major offices in London and Rotterdam, employs a total of 6,000 staff in the UK.

Blog Q - How will cutting a third of the workforce affect the morale at Unilever?

Unilever