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Disney is set to lay off 7,000 workers, CEO Bob Iger said on the company’s earnings call on Wednesday.
The company is targeting a total of $5.5 billion in cost savings, Iger said. In all, $3 billion in cuts will come from content, excluding sports, he added; while $2.5 billion will come from non-content cuts.
«This reorganization will result in a more cost-effective, coordinated and streamlined approach to our operations,» said Iger, who rejoined the company as CEO in November. «I do not make this decision lightly.
The layoffs amount to roughly 3% of the company’s 220,000 workers worldwide, according to a securities filing made in October.
The job cuts will coincide with a restructuring that will divide the company into three core businesses: Disney Entertainment, ESPN and Disney Parks, Iger said.
Shares of Disney, the parent company of ABC News, rose nearly 8% in after-hours trading.
The layoffs arrive amid a string of layoffs in the media industry.
