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Disney CEO Announces Restructuring with 7,000 Job Cuts

Disney CEO Bob Iger has announced a major restructuring plan, cutting 7,000 jobs to save $5.5 billion and make the streaming business more profitable. The move represents 3.6% of Disney's global workforce.

Walt Disney Pictures logo
Walt Disney Pictures logo 

Disney Restructures for Cost Savings and Better Efficiency

Under the plan, Disney will restructure into three segments: entertainment, sports-focused ESPN unit, and Disney parks, experiences, and products. According to Iger, this will allow for a more cost-effective and coordinated approach to operations. The company will also reinstate a dividend for shareholders.

Shareholder Approval as Disney Shares Rise After Announcement

Shares of Disney rose 4.7% to $117.22 in after-hours trading, indicating approval from shareholders. A spokesperson for activist investor Nelson Peltz's Trian Group also commented on the positive response, stating, "We are pleased that Disney is listening."