Disney's Beijing Staff Layoffs Had More Than What Meets The Eye
Portfolio Pulse from Shivani Kumaresan
Walt Disney Co (NYSE:DIS) laid off over 300 staff members in Beijing in March 2023, citing cost-saving measures. However, the layoffs were also influenced by concerns over data security, as the Beijing team had access to U.S. customer data. This move reflects the ongoing complexity of Disney's relationship with China, a crucial market for Disney. Following the layoffs, some streaming functions encountered issues, with services like Hulu experiencing disruptions. DIS shares are trading lower by 1.26% at $81.69.
September 22, 2023 | 6:05 pm
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Disney's layoffs in Beijing, driven by data security concerns, reflect the complexity of its relationship with China. The layoffs have caused disruptions in streaming services like Hulu. DIS shares are trading lower.
Disney's layoffs in Beijing, driven by data security concerns, have caused disruptions in its streaming services. This could negatively impact customer satisfaction and potentially lead to a loss of subscribers, which would negatively impact revenues. Additionally, the layoffs reflect the ongoing complexity of Disney's relationship with China, a crucial market for the company. This could potentially impact future business prospects in the region. These factors are likely contributing to the decline in DIS shares.
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