Microsoft, Meta, Google, Twitter, and now Disney. Layoffs have become a common occurrence in giant firms.
The tech industry especially is rocked by job cuts, with the Walt Disney company terminating the services of 7,000 employees. The move, it’s reported, is aimed at saving $5.5 billion in costs and making its operations profitable. It’s estimated that the layoffs comprise 3.6% of Disney’s global workforce.
The move comes in the wake of criticism that the company had been overspending on streaming. The firm has reportedly decided to reinstate a dividend for shareholders.
Under the plan to go lean, Disney has decided to restructure into three segments: 1) Film, business, and entertainment unit 2) ESPN unit for sports and 3) Disney parks, experiences, and products.
Shares of the company rose 4.7% to $117.22 in after-hours trading.
“This reorganisation will result in a more cost-effective, coordinated approach to our operations,” the company’s group CEO Bob Iger reportedly said on a conference call. “We are committed to running efficiently, especially in a challenging environment.”
He added that the company would “focus even more on our core brands and franchises” and “aggressively curate our general entertainment content.”
Additionally, Disney is planning to cut $2.5 billion in sales and general administrative expenses and other operating costs. This is the third time in five years that Disney has restructured its business.