Disney to cut 7,000 jobs as part of a ‘significant transformation’ and £4.5 billion cost-saving plan

Disney has announced it will cut around 7,000 jobs as part of a “significant transformation” and a targeted £4.5 billion cost-saving plan across the company.

The Walt Disney Co job cuts will amount to about 3% of the entertainment giant’s global workforce.

The move was announced by CEO Bob Iger after Disney+ reported a first fall in subscribers since it launched the service in 2019.

Disney+ reported a $1.5 billion loss and its subscribers fell by around 2.4 million to 161.8 million.

The plan will see the company restructure into three segments - entertainment which will include film, TV and streaming, sports-focused ESPN and Disney parks, experiences and products.

Meanwhile, Disney reported an 8% rise in sales to £19.4 billion ($23.5 billion) between October and December last year.  Profit also rose, up by 11% to £1.2 billion ($1.3 billion).

After the announcement Disney share price rose by more than 5%.

‘I have enormous respect of our employees worldwide’

Mr Iger made a shock return as Disney’s chief executive in November, less than a year after he retired from the firm.

He had previously headed Disney for 15 years and replaced Bob Chapek, who took over as chief executive in February 2020.

He was brought back to steer the company through turbulent times after its share price plummeted and Disney+ continued to make a loss.

Commenting on the job cuts, Mr Iger said: "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."

Mr Iger said the company is embarking on a “significant transformation” and the changes would "better position us to weather future disruption and global economic challenges".

He told analysts on a conference call: "This reorganisation will result in a more cost-effective, coordinated approach to our operations.”