Disney is planning to eliminate 7,000 jobs.
The layoffs are a part of the entertainment company’s plan to reduce expenses as part of a significant restructuring that CEO Bob Iger, who is making a comeback, announced. On a conference call with analysts, Iger stated, “This reorganization will result in a more cost-effective, coordinated approach to our operations.” “We are dedicated to operating effectively, particularly in a difficult environment.”
Iger also disclosed the company would restructure into three segments in his first earnings report during his second tenure as CEO:
a division of entertainment that oversees film, television, and streaming, led by Alan Bergman, head of film, and TV executive Dana Walden;
a sports-focused ESPN division, still under Jimmy Pitaro’s direction;
and Disney experiences, products, and parks, under Josh D’Amaro’s leadership.
Despite exceeding Wall Street’s expectations overall, Disney’s streaming service Disney+ saw its first user decline since its November 2019 launch. Iger’s frugal strategy was brought on by the company’s slowing subscriber growth and fiercer competition.
Disney is restructuring, and it is laying off 3.6% of its global workforce. Iger withheld information about which departments are impacted and to what extent.
Estimated cost savings from the layoffs: $5.5 billion
Disney’s shares increased by 4.7% in after-hours trading.
