It’s a tough day for Disney investors as news of layoffs in its television division coincides with a surge in ad rate commitments. The conglomerate recently let go of 140 employees, constituting 2% of its workforce, affecting departments such as National Geographic and marketing operations.
National Geographic experienced the most significant impact with a 13% reduction in its team, accounting for over half of the total cuts. This move aligns with Disney’s previous efforts to cut spending in traditional TV operations and focus on streaming platforms, championed during the tenure of former CEO Bob Iger.
Despite Setbacks, an Influx of Advertising Revenue
Amidst the layoffs, reports indicate a positive trend for Disney with a 5% increase in upfront ad sales volume. Despite facing stiff competition from streaming giants like Amazon and Netflix, as well as free ad-supported TV platforms, Disney’s enduring brand strength continues to attract advertisers.
Investor Outlook on Disney Stock
Analysts offer a favorable view on Disney stock, with a Strong Buy consensus based on 21 Buy and five Hold ratings in the last three months. After a 5.13% rise in share price over the past year, the average price target of $127.64 per share implies a potential upside of 42.31%.
