Categories: USA

Disney to reorganize the company and fire 7,000 employees

Disney said Wednesday it is planning to reorganize into three segments.

The media and entertainment giant said it would now be made up of three divisions:

  • Disney Entertainment, which includes most of its streaming and media operations
  • An ESPN division that includes the TV network and streaming service
  • A Parks, Experiences and Products unit

The move marks the most significant action Bob Iger has taken since returning to the company as CEO in November. Disney announced the changes minutes after it posted its most recent quarterly earnings.

On Wednesday during its quarterly earnings call with investors, Disney also announced it would be cutting $5.5 billion costs, which will be made up of $3 billion from content, excluding sports, and the remaining $2.5 billion from non-content cuts.

Disney also said it would be eliminating 7,000 jobs from its workforce. That would be about 3% of the roughly 220,0000 people it employed as of Oct. 1, according to an SEC filing, with roughly 166,000 in the U.S. and about 54,000 internationally.

Disney’s stock rose more than 8% in after-market trading.

Media companies, such as Warner Bros. Discovery, have been pulling back on content spending and looking to make their streaming businesses profitable. Heightened competition has led to slowing subscriber growth, and companies have been looking to find new avenues of revenue growth. Some, like Disney+ and Netflix, have added cheaper, ad-supported options.

Source: www.nbcnews.com

Josephine Poot

Contributor

Recent Posts

Senate Democrats mock Biden for selling weapons to Israel

Some of President Biden's strongest Senate allies are calling on Israelis to end months of fierce fighting and criticizing the…

10 months ago

The biggest cities in Ukraine are struck by Russian missiles, leaving at least 4 dead and over 100 injured

Ukraine's KYIV — At least four people were killed and nearly 100 injured when Russian hypersonic ballistic missiles attacked Ukraine's…

10 months ago

Good News That’s Much Needed for Biden

The economy is making Americans feel a little more upbeat, especially when it comes to jobs and incomes, which could…

11 months ago

College Ventilation System Reveals Missing Man

The discovery of a decaying body inside a college ventilation system marked the tragic and unexplained end to a missing…

11 months ago

Following three Palestinian shots, a Vermont man was arrested

Following the shooting deaths of three 20-year-old Palestinian-American students in Vermont, authorities have detained a man. According to a news…

11 months ago

China is told to cease “COVID deception” due to the pneumonia outbreak by the US envoy

The United States ambassador to Japan, Rahm Emanuel, urged Chinese authorities "to abandon COVID deception" and demanded that China be…

12 months ago

This website uses cookies.