Disney (DIS) Lays off 7,000 Workers, Cutting $5.5 Billion in Costs

The Walt Disney Company (DIS) has announced plans to lay off 7,000 employees in an effort to cut $5.5 billion in costs. The media giant aims to restructure the organization into three main business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. CEO Bob Iger spoke during the company’s Q1 earnings call, stating that the layoffs are necessary to address the challenges faced by the company, but expressed regret for the personal impact it would have on employees.

Disney shares saw an increase of 5% following the announcement of cost reductions and staff cuts. The company reported better-than-expected quarterly results, with theme park demand soaring during the holiday period. The first quarter also showed a slight dip in Disney+ subscribers, but losses in the streaming sector were narrower than expected. CEO Iger returned to the company in November and outlined a plan for a more cost-effective and streamlined approach to operations. The company’s dividend, which was halted during the pandemic, will be reinstated by the end of the year. The Walt Disney Company’s annual shareholder meeting is scheduled for April 3.