The Magic Kingdom at Walt Disney World in Lake Buena Vista, Florida. AP
The Magic Kingdom at Walt Disney World in Lake Buena Vista, Florida. AP
The Magic Kingdom at Walt Disney World in Lake Buena Vista, Florida. AP
The Magic Kingdom at Walt Disney World in Lake Buena Vista, Florida. AP

Disney to cut 7,000 jobs in Iger’s company ‘transformation’


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The Walt Disney Company on Wednesday said it would cut about 7,000 jobs as part of a “significant transformation” announced by chief executive Bob Iger.

The job cuts amount to about 3 per cent of the entertainment company’s global workforce and were announced after Disney reported quarterly results that topped Wall Street’s forecasts.

Mr Iger returned as chief executive in November after a challenging two-year tenure by his chosen successor, Bob Chapek.

The company says the job reductions are part of a targeted $5.5 billion saving across the company.

As of October 1, Disney employed 220,000 people, of which about 166,000 worked in the US and 54,000 internationally.

In its latest results, solid growth at Disney’s theme parks helped to offset tepid performance in its video streaming and movie business.

Disney said on Wednesday that it earned $1.28 billion, or 70 cents a share, in the three months to December 31.

That compares with net income of $1.1 billion, or 60 cents a share, a year earlier.

Excluding one-time items, Disney earned 99 cents a share. Analysts, on average, were expecting adjusted earnings of 78 cents a share, according to FactSet.

Revenue grew 8 per cent to $23.51 billion from $21.82 billion a year earlier. Analysts were expecting revenue of $23.44 billion.

Mr Iger said the company was embarking on a transformation that management believes will lead to improved profitability in its streaming business.

The company said Disney+ ended the quarter with 161.8 million subscribers, down 1 per cent from since October 1.

Hulu and ESPN+ each posted a 2 per cent increase in paid subscribers during the quarter.

Shares in Disney, which is based in Burbank, California, rose 3 per cent in after-hours trading.

Pieces of Her

Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick   

Director: Minkie Spiro

Rating:2/5

UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest

Samar Honey

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: February 08, 2023, 11:14 PM