Amid fears of a looming recession, Walt Disney Co announced on Wednesday that it has slashed 7000 jobs, as per fresh reports. The recent job cuts are supposedly a part of Disney’s restructuring under newly reinstated CEO Bob Iger. The American company seeks to save 5.5 billion dollars in costs and render its streaming business profitable. The total number of employees laid off represents approximately 3.6 percent of Disney’s global workforce.
“I do not take this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide,” Iger communicated on a call to analysts just after Disney divulged its quarterly earnings. He continued, “This reorganization will result in a more cost-effective, coordinated approach to our operations. We are committed to running efficiently, especially in a challenging environment.”
He further stated that the American conglomerate would concentrate more keenly on its core brands and franchises, while aggressively curating its general entertainment content.
The move has reportedly quelled the criticism of overspending on the streaming business from activist investor Nelson Peltz, by promising to reinstate a dividend for stakeholders. “We are pleased that Disney is listening,” said a spokesperson representing Peltz’s Trian Group on Wednesday.
Peltz is reportedly applying for a seat on the Disney board and had endeavoured for a restoration of the dividend by fiscal 2025.
Paul Verna, Principal Analyst at Insider Intelligence, said, “My sense is that Disney is already doing many of the things Nelson Peltz is demanding, though not necessarily in response to pressure from him.”