Walt Disney Co announced a major corporate restructuring on Wednesday that will result in 7,000 job losses as part of an effort to save $5.5 billion, according to Reuters.
The layoffs represent about 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 plans to reorganize into three segments: an entertainment division that includes movies, TV and streaming; the sports-oriented division of ESPN; and Disney Parks, Experiences and Products.
The company said the restructuring will streamline operations by streamlining operations and cutting costs.
Disney is the latest media company to announce layoffs in response to slowing subscriber growth and increased competition for streaming viewers.
Disney earlier 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.
Disney last laid off staff during the height of the pandemic, when it announced 32,000 layoffs in November 2020, mostly at its theme parks. The reductions took place in the first half of the 2021 fiscal year.
Photo: Dreamstime
Source: Hot News
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