Disney is set to cut 7,000 jobs from its workforce as part of a global restructuring strategy that will see the entertainment company save $5.5 billion.
1. Not a Disney Fairytale
Disney has announced that it will cut 7,000 jobs from its 220,000 global workforce as part of a cost-cutting initiative aimed at streamlining the company. Recently returned CEO Bob Iger says the cuts are necessary to address challenges faced by the company.
The cost-cutting effort will save the company $5.5 billion, with 50% of the savings coming from the reduction in marketing expenses alone. Despite the job cuts, Iger said that streaming remains the company’s top priority and “its future.” Disney reported better-than-expected financial results for the fourth quarter of 2022.
2. Robot Wars makes a comeback
Google faced criticism for the performance of its recently announced Bard AI technology. In an event that was defined as chaotic and where the focus was to showcase new updates to Google Maps and Google Search, the company offered a demo of its own AI-language model prototype. The demo has drawn attention to the clear shortcomings in comparison to Open AI’s Chat-GPT and shares lost 9% in the following trading session as a result.
Just a few days earlier, Microsoft revealed its own plans to integrate ChatGPT technology into search engine Bing and web browser Edge, in order to enhance information and provide a more intelligent search experience.
3. Exchange-traded Fun
JPMorgan Asset Management has predicted that US exchange-traded funds (ETFs) will more than double in size over the next five years, with assets growing from $7 trillion to $15 trillion by 2028. The global head of ETF solutions, Bryon Lake, stated that the ETF industry is just at the beginning of what could be substantial growth.
The growth in ETFs has been driven by the popularity of actively managed funds, which have seen a boom in recent years. Currently, actively managed ETFs make up 5% of total ETF assets, but Lake predicts that this figure could rise to 10-20% in the next five years, translating to up to $3 trillion in active ETF assets.
4. Help from beyond
The future of Bed Bath & Beyond hangs in the balance, as the struggling home goods retailer races to secure its future with a final, high-stakes move. The company has raised over $1 billion in a stock offering and secured a $100 million loan from Sixth Street Partners, in a last-ditch effort to avoid bankruptcy.
Analysts still warn that the stock offering may not be successful, with a weak balance sheet, heavy debt, and a broken business model being cited as the main reasons for a potential failure. The struggling business is hoping to reduce its brick and mortar stores from 955 to 480 in a cost-cutting measure.
5. Flip the switch
Macquarie Group delivered strong Q3 results and remains on track for another record year, with energy market volatility and rising interest rates helping to offset a slowdown in deal making for its investment banking division. CEO Shemara Wikramanayake said the uncertain macroeconomic environment was impacting on deals but extreme weather and the ongoing war in Ukraine meant the commodity unit was a key contributor to performance.
