Walt Disney Co announced on Wednesday a sweeping corporate restructuring that will result in 7,000 job losses as part of an effort to make $5.5 billion in savings, according to Archyde.com.
Logo DisneyPhoto: Nicoleta Raluca Tudor, Dreamstime.com
The layoffs represent regarding 3.6 percent of Disney’s global workforce.
The media company, which is under pressure to turn a profit from its global streaming business, said it would reorganize into three segments: an entertainment unit comprising film, television and streaming; a sports-focused ESPN unit; and Disney parks, experiences and products.
The company said the restructuring will streamline operations, streamlining operations and reducing costs.
Disney is the latest media company to announce layoffs in response to slowing subscriber growth and increased competition for streaming viewers.
Disney previously reported its first quarterly decline in subscriptions for its streaming media unit Disney+, which lost more than $1 billion.
Warner Bros Discovery Inc and Netflix Inc have previously made layoffs.
The last time Disney cut staff was during the height of the pandemic, when it announced in November 2020 that it would lay off 32,000 employees, mostly at its theme parks. The reductions took place in the first half of the 2021 fiscal year.
photo: Dreamstime
