Hulu, the popular streaming service, is reportedly facing “significant” layoffs in the near future, according to a report. Although the specifics of the layoffs are not yet known, they are expected to be disclosed as soon as next week, though they might occur in waves rather than all at once.
This information comes in the midst of rumors that Disney, owning a majority stake in Hulu, intends to lay off almost 7,000 employees across the entire company. This suggests that Hulu’s employment cuts may be more serious. Disney is apparently intending to make cuts at ABC Signature and 20th Television as well. So, Hulu is not the only company facing job cuts.
All of this occurs as Disney must choose between selling Hulu or completing its agreement with Comcast to acquire the entire company with time running out.
During Disney’s last earnings call, Disney CEO Bob Iger was asked if Disney would be open to selling off Hulu. In response, he said that, “Everything is on the table right now, so I am not going to speculate whether we are a buyer or a seller of (Hulu),” Disney CEO Bob Iger said. “But I obviously have suggested that I’m concerned about undifferentiated general entertainment, particularly in the competitive landscape that we are operating in, and we are going to look at it very objectively and expansively.”
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Hulu’s position is in doubt since Disney already offers a variety of streaming services like Disney+ and ESPN+. It has been proposed that Disney should turn Hulu into a live TV-only streaming platform while moving on-demand content to Disney+. Additionally, there have been rumors that Disney would sell off Hulu and remove the majority of its content from it.
Nevertheless, there is a compelling case to preserve Hulu, as it is one of the most widely used live TV streaming services. Disney may eventually be able to generate revenue by keeping Hulu running, even if it is primarily used for live TV streaming. The question is will Disney be seeking to promptly cash out on Hulu, or will it be ready to wait for it to become profitable?
It has been made apparent that if a deal could be reached, Comcast would be willing to purchase Hulu. It is also said that other investing organizations may be open to the notion as well.
Disney is currently weighing all of its options with regard to Hulu, and no decisions have been made yet.
