Disney said it will be reorganizing into three divisions: Entertainment, ESPN and parks and experiences.
- Disney will slash 7,000 jobs from its workforce and plans to cut $5.5 billion in costs, including $3 billion in content savings.
- CEO Bob Iger said the company isn’t considering a spinoff of ESPN.
The move marks the most significant action Bob Iger has taken since returning to the company as CEO in November. Disney announced the changes minutes after it posted its most recent quarterly earnings. The announcements also come as Disney engages in a proxy fight with activist investor Nelson Peltz and his firm Trian Management.
Disney is facing pressure to control costs and boost profits as it continues to lose money from its key streaming business, which includes Disney+.
According to Disney’s most recent annual report, the entertainment giant has roughly 190,000 employees, including part-time and seasonal staff.
