The Walt Disney Company has yet to emerge from its efforts to recover from its financial troubles, with high-profile companies this week following continued troubles at what used to be the company's most reliable revenue-generating unit, the Disney theme parks. The company's stock was downgraded due to the
Disney stock fell on Tuesday after analysts at Raymond James wrote that the company's “parks are under pressure” and that the “consumer outlook is questionable” as demand slows. It fell more than 2%.
Households, hit by record consumer prices under the administrations of President Kamala Harris and Joe Biden, are cutting back on non-essential spending such as expensive vacations.
Disney acknowledged this in its most recent quarterly earnings report in August, saying its “Experiences” division, which includes theme parks, cruise ships and other live entertainment products, would suffer revenue declines in 2015, with executives specifically citing inflation. Ta. Next few quarters.
Disney's Chief Financial Officer Hugh Johnston even said that low-income consumers have been hit hard in the current economy and, as a result, are not visiting Disney parks as much as they used to. For the most recent quarter, Disney reported a 6% decline in operating income for its Experiences division.
Disney parks have long been reliable cash cows for middle- and working-class American families. Many of them spend years saving up to take expensive trips. But under the Biden-Harris administration, consumer prices have risen to record levels, forcing families to cut spending to pay for groceries, rent and insurance.
The latest bad news for Disney comes on the heels of further layoffs.
The company cut an estimated 300 jobs at the corporate level last week, all in the United States, and affected multiple departments including legal, human resources, finance and communications.
Disney cut a whopping 7,000 jobs around the world last year, and CEO Bob Iger promised an additional $2 billion in cost savings.
Meanwhile, Disney continues to churn out expensive flops on its streaming service.
acolyte — What I woke up to recently star wars The series was canceled after just one season after heavy promotion and a reported $231 million budget. The feminist-themed series featured lesbian witches and a transgender actor in a key role.
The show's creators recently warned star wars Fans mistakenly believe that people who engage in what she calls “bigotry, racism, and hate speech” are not real fans.
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