Disney is cutting 3% of its workforce, which equates to 7,000 jobs, its CEO announced. Bob Iger.

The layoffs are part of a broader restructuring that could save the group about $5.5 billion over the next few years, revitalizing production and making the streaming business profitable.

Investors have been waiting for Iger’s strategic plan to revitalize the company since his surprise reappointment last November. In a statement, he noted that Disney is “beginning a major transformation” that will lead to “sustainable growth and profitability” of streaming.

“Despite the need to address today’s difficulties, I do not take this decision lightly,” Mr. Iger said during a conference call with analysts to whom he presented the company’s disappointing quarterly results.

It is noted that Iger’s predecessor, Bob Chapek, was relieved of his duties by the board of directors several months ago after Disney recorded a quarterly loss of $ 1.5 billion in streaming services.

According to its earnings report released on Wednesday, the company promised to cut that huge loss by $200 million in the last quarter of the year, beating that target by about $400 million.

As Christine McCarthy, group chief financial officer, noted, further reduction of losses is expected in the current quarter.

Disney Plus, the flagship streaming service, lost about 2.4 million subscribers in a quartermainly due to the loss of the Indian Cricket League.

Source: Financial Times.