Disney announces 7,000 layoffs, cuts $5.5 billion in costs 

Walt Disney Co on Wednesday said it is cutting 7,000 jobs in an effort to save $5.5 billion worth of costs in its latest restructuring. The layoffs represent around 3.6% of Disney’s global workforce. 

"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," Disney’s CEO, Bob Iger, said after the company released its first-quarter results on Wednesday. 

The move comes as Disney plans to restructure the whole organization into three core segments: an entertainment unit that encompasses film, television, and streaming, a sports-focused unit, and Disney parks, experience, and products. 

"This reorganization will result in a more cost-effective, coordinated approach to our operations," Igor said in a conference call. "We are committed to running efficiently, especially in a challenging environment."

Iger said that streaming is currently Disney’s top priority. The company will "focus even more on our core brands and franchises'' and "aggressively curate our general entertainment content," he added. 

Disney is currently struggling to add new subscribers to its streaming service Disney+. During the first quarter, streaming losses neared $1.1 billion. 

"In our zeal to go after subscribers, we got too aggressive in our promotions," Iger added. 

After the restructuring announcement, Disney shares rose 4.7% to $117.22. The company’s financial fortunes and its stock price had fallen by 25% over the last year.