Key takeaways:
- The Walt Disney Co. announced it will be cutting 7,000 jobs from its global workforce, amounting to about 3% of its total employees.
- The job cuts come as part of a cost-cutting effort and are part of a “significant transformation” for the media and entertainment giant.
- The job cuts come after Disney reported quarterly results that topped Wall Street’s forecasts, and are part of a larger effort to reduce costs and improve the company’s financial standing.
The Walt Disney Co. announced Wednesday that it will be cutting 7,000 jobs from its global workforce, amounting to about 3% of its total employees. The job cuts come as part of a cost-cutting effort and are part of a “significant transformation” for the media and entertainment giant.
The announcement was made by CEO Bob Iger, who returned to lead the company in November when the board fired Bob Chapek as the company’s leader. Iger said, “While this is necessary to address the challenges we’re facing today, I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I’m mindful of the personal impact of these changes.”
The job cuts come after Disney reported quarterly results that topped Wall Street’s forecasts. Disney is struggling with costs for luring new subscribers to its streaming service, Disney+, amid heated competition from Netflix, HBO and others.
Iger is under pressure to revive the company’s financial fortunes and its stock price, which has tumbled 24% in the last year. The job cuts are part of a larger effort to reduce costs and improve the company’s financial standing.
The Walt Disney Co. has been a major player in the media and entertainment industry for decades, and the job cuts come as a shock to many. It remains to be seen how the company will adjust to the changes and how its employees will be affected.
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