Company Briefs
Walt Disney to lay off staffers
Media company Walt Disney is laying off several hundred employees in film, television and corporate finance, a source familiar with the matter said on Monday. The layoffs affect multiple teams around the world, including film and TV marketing, TV publicity and casting and development, the source said. Disney and other companies are reshaping their business strategies in response to the migration of cable TV audiences to streaming platforms. In 2023, Disney cut 7 000 jobs as part of an effort to save $5.5 billion (almost R100 billion now) in costs. Disney also laid off nearly 6%, or fewer than 200 people, in the ABC News Group and Disney Entertainment Networks in March. The company’s most recent earnings report in May exceeded Wall Street expectations with an unexpected boost from the Disney streaming service and strong results from theme parks. – Reuters
UnitedHealth in bid to win investor trust back UnitedHealth Group’s new CEO Steve Hemsley on Monday told shareholders he was determined to earn back their trust after its surprising earnings shortfall earlier this year, saying the company was evaluating trends in medical costs and how that will affect its future performance. Hemsley replaced Andrew Witty as chief executive in May after the company’s first earnings miss since 2008. UnitedHealth also suspended its earnings outlook as it reckons with higher-than-expected costs for its Medicare Advantage unit for adults 65 and older and people with disabilities. “We are well aware we have not fulfilled your expectations or our own. We apologize for that performance, and we’re humbly determined to earn back your trust and your confidence,” Hemsley said at the company’s annual shareholder meeting. UnitedHealth shares are down 40% this year but rose 1% on Monday. The company is facing several challenges, including rising medical costs, regulatory scrutiny of its drug pricing negotiations and reported probes on its billing practices. – Reuters
BAT reports expectant rise in revenues Rothmans, Peter Stuyvesant and Paul Mall owner British American Tobacco said on Tuesday it is raising its full-year revenue amid a boost in its US market and a strong showing by its modern oral offering. BAT, whose brands include Velo oral pouches and Vuse electronic cigarettes, said it now expects revenue growth of between 1% and 2% for its first half to end June, as well as its full year, up from about 1%. The group has been battling in the US amid economic pressures and fierce competition. BAT also battled the continued lack of effective enforcement against “illicit single-use vapour products” in the US. Speaking during a pre-close update, BAT CEO Tadeu Marroco said the illicit pressure continues in both the US and Canada, but the group has returned to growth in the market, helped by strong growth showing by Lucky Strike. It also saw an “excellent” performance from its recently launched Velo Plus - which uses synthetic nicotine – while it expects new products, such as Vuse Ultra, to boost it in its second half.
– Reuters
Media company Walt Disney is laying off several hundred employees in film, television and corporate finance, a source familiar with the matter said on Monday. The layoffs affect multiple teams around the world, including film and TV marketing, TV publicity and casting and development, the source said. Disney and other companies are reshaping their business strategies in response to the migration of cable TV audiences to streaming platforms. In 2023, Disney cut 7 000 jobs as part of an effort to save $5.5 billion (almost R100 billion now) in costs. Disney also laid off nearly 6%, or fewer than 200 people, in the ABC News Group and Disney Entertainment Networks in March. The company’s most recent earnings report in May exceeded Wall Street expectations with an unexpected boost from the Disney streaming service and strong results from theme parks. – Reuters
UnitedHealth in bid to win investor trust back UnitedHealth Group’s new CEO Steve Hemsley on Monday told shareholders he was determined to earn back their trust after its surprising earnings shortfall earlier this year, saying the company was evaluating trends in medical costs and how that will affect its future performance. Hemsley replaced Andrew Witty as chief executive in May after the company’s first earnings miss since 2008. UnitedHealth also suspended its earnings outlook as it reckons with higher-than-expected costs for its Medicare Advantage unit for adults 65 and older and people with disabilities. “We are well aware we have not fulfilled your expectations or our own. We apologize for that performance, and we’re humbly determined to earn back your trust and your confidence,” Hemsley said at the company’s annual shareholder meeting. UnitedHealth shares are down 40% this year but rose 1% on Monday. The company is facing several challenges, including rising medical costs, regulatory scrutiny of its drug pricing negotiations and reported probes on its billing practices. – Reuters
BAT reports expectant rise in revenues Rothmans, Peter Stuyvesant and Paul Mall owner British American Tobacco said on Tuesday it is raising its full-year revenue amid a boost in its US market and a strong showing by its modern oral offering. BAT, whose brands include Velo oral pouches and Vuse electronic cigarettes, said it now expects revenue growth of between 1% and 2% for its first half to end June, as well as its full year, up from about 1%. The group has been battling in the US amid economic pressures and fierce competition. BAT also battled the continued lack of effective enforcement against “illicit single-use vapour products” in the US. Speaking during a pre-close update, BAT CEO Tadeu Marroco said the illicit pressure continues in both the US and Canada, but the group has returned to growth in the market, helped by strong growth showing by Lucky Strike. It also saw an “excellent” performance from its recently launched Velo Plus - which uses synthetic nicotine – while it expects new products, such as Vuse Ultra, to boost it in its second half.
– Reuters
