The Walt Disney Company has announced a major reorganization that will cut 7,000 jobs. That’s 3.6 percent of the global workforce. The company reports this in a Wednesday press release. The reason for the reorganization comes after disappointing results from streaming service Disney +.
With the job cuts, Disney wants to save 5.5 billion dollars (five billion euros). Disney+ suffered a loss of $1 billion in the quarter. For the first time since the launch of the service, the number of subscribers decreased, a total of 2.4 million due to the price increase.
According to director Bob Iger, the reorganization is necessary to be able to work more cost-effectively. He also believes the reorganization will lead to “sustainable growth and profitability for the streaming business”.
Read also: Nelson Peltz, Wall Street’s best-known activist investor, pounces on Disney: ‘Company in crisis’
Bob Iger led Disney from 2005, but stepped down as CEO in 2020. He returned in November 2022, after the results under his successor Bob Chapek were disappointing. During Iger’s previous stint as general manager, he bought Pixar, Marvel Entertainment and Lucasfilms, known for the Star Wars series, among others.
The last time Disney made such a big cut was during the corona pandemic. Then 32,000 people were laid off, mainly in the theme parks that were mostly closed due to the pandemic.