Disney to Lay off 7,000 Employees to restructure their business and an effort to save $5.5 billion in costs and make its streaming business profitable. The job cuts will account for around 3.6% of the entire workforce at Disney. Disney’s restructuring comes in response to slowing subscriber growth and increased competition for streaming viewers.
The restructuring is announced by CEO Bob Iger, will result in a more cost-effective, coordinated approach to Disney’s operations, as the company shifts its focus to its core brands and franchises.
Under the new plan, Disney will restructure into three segments: an entertainment unit that encompasses film, television and streaming, a sports-focused ESPN unit, and Disney parks, experiences and products. TV executive Dana Walden and film chief Alan Bergman will lead the entertainment division, while Jimmy Pitaro will continue to lead ESPN.
Disney lay offs come amidst a barrage of job cuts in the technology and media sector. The year started with some of the biggest companies in the world conducting unprecedented mass layoffs. Google laid off 12,000 employees and Amazon decided to let go of 18,000 employees including Meta and Dell.
