By John Ikani
Walt Disney has revealed a comprehensive restructuring effort aimed at streamlining its operations and saving $5.5 billion in costs.
The restructuring will result in the loss of 7,000 jobs, equivalent to 3.6% of the company’s workforce.
The layoffs come as Disney faces challenges from slowing subscriber growth, increased competition, and criticism from activist investor Nelson Peltz.
It also comes amid a wave of job cuts in the tech and media sectors.
Companies like Google and Amazon have already laid off thousands of employees this year.
Bob Iger, who recently returned as CEO, is leading the effort to focus on Disney’s core brands and franchises.
Disney will now be structured into three segments – an entertainment unit that covers film, TV, and streaming; a sports-focused ESPN unit, as well as Disney parks, experiences, and products.
TV executive Dana Walden and film chief Alan Bergman will head up the entertainment division, while Jimmy Pitaro will continue leading ESPN.
This marks the third restructuring for Disney in five years and a new chapter in Iger’s leadership.
The goal of the restructuring is to put Disney’s streaming business on a path to growth and profitability while empowering its creative leaders.
