As part of a $5.5 billion savings effort, Disney has revealed a significant corporate restructuring plan that would result in losing 7,000 jobs. The restructure, which affects around 3.6% of Disney’s global staff, comes as the firm faces growing streaming competition and slower subscriber growth.
During a recent earnings call, CEO Bob Iger revealed the cost-cutting strategy to investors while hinting at possible sequels to Toy Story, Frozen, and Zootopia. Iger stressed the significance of franchises in expanding on Disney’s “unrivalled brands.”
Disney will be restructured into three sectors — its entertainment division, which includes film, television, and streaming; ESPN sports block; and Disney parks, experiences, and products. According to the company, the restructuring would streamline operations, increase efficiency, and save expenses.
Disney’s job cuts follow similar cost-cutting measures by other tech giants such as Alphabet, Amazon, Meta, and others. The media industry, including Disney, has been under pressure to earn a profit from its worldwide streaming operation. Disney+, the company’s streaming service, just revealed its first quarterly membership drop, losing more than $1 billion.
Aside from the layoffs, Disney unveiled plans for sequels to iconic franchises, including Toy Story, Frozen, and Zootopia. The sequels are intended to expand on the success of the first two films, which grossed more than $1 billion at the box office. Although no information about the new films has been revealed, CEO Iger expressed confidence in their success.