Disney layoffs: Company to cut 7,000 jobs in CEO Iger’s ‘transformation’

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The job cuts amount to about 3% of the entertainment giant’s global workforce and were unveiled after Disney reported quarterly results that topped Wall Street’s forecasts.

Iger returned as CEO in November following a challenging two-year tenure by his handpicked successor, Bob Chapek. The company said the job reductions are part of a targeted $5.5 billion cost savings across the company. As of Oct. 1, Disney employed 220,000 people, of which about 166,000 worked in the U.S. and 54,000 internationally.

In its latest results, solid growth at Disney’s theme parks helped offset tepid performance in its video streaming and movie business. Disney said sales at its parks, experiences and products segment grew 21% to $8.74 billion, from $7.23 billion a year earlier. While revenue for the segment that includes Disney’s movie business edged up 1% to $14.78 billion from $14.59 billion a year earlier.

Management said Wednesday that Disney+ plus will achieve profitability by the end of its next fiscal year in September 2024.The move to revamp the company and slash costs comes as Disney is under pressure to turn its business around.

 

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