Layoff 2023: Entertainment giant The Walt Disney Company`s flagship streaming service Disney+ lost four million subscribers in its second quarter that ended April 1, as the company approached its third round of layoffs.

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In its Q2 2023, the company reported 157.8 million subscribers, compared to 161.8 million in the previous quarter.

The key reason behind the decline was Disney+Hotstar, which lost 8 per cent of its subscriber base -- from 57.5 million in Q1 2023 to 52.9 million in Q2.

"Disney+Hotstar average monthly revenue per paid subscriber decreased from $0.74 to $0.59 due to lower per-subscriber advertising revenue," the company said in a statement.

The drop in the Indian subscribers is mainly because the platform did not retain streaming rights for the Indian Premier Cricket (IPL) League.

Overall for the company, the revenues for the quarter and six months grew 13 per cent and 10 per cent, respectively.

Also Read: Layoff 2023: Paramount Media Networks slashes 25% jobs, to shut down MTV News

"We`re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we`ve been making throughout the company to realign Disney for sustained growth and success," said Robert Iger, CEO, The Walt Disney Company.

Disney plans to reduce its workforce by 7,000 jobs as part of a larger reorganisation that will see the company cut $5.5 billion in costs.

The fresh round of job cuts is likely to affect Disney Entertainment and ESPN, as well as Disney Parks, Experiences and Products.

"I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide and I am mindful of the personal impact of these changes," Iger had said.

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