Media and entertainment behemoth The Walt Disney Company has announced to reduction of 7,000 jobs as the company looks to cut costs and implement serious strategies to make its streaming business successful.
The decision to cut Disney’s global overall workforce by 3.6% comes after new CEO Bob Iger joined the company in November 2022.
Disney aims to save around $5.5 billion with these cost-cutting measures. The decision to trim the workforce in order to save costs is seen in a positive light by the investor community. Soon after the announcement, Disney’s shares surged 4.7% to $117.22 in after-hours trading.
The cost-cutting measures will affect Disney’s three segments — film, television and streaming unit; sports unit comprising ESPN and its parks, experience and related products unit. The company has also decided to restore shareholder dividends, which will be increased over time, says the CEO. The current restructuring is Disney’s third one in the past five years.