The major revamp in the company comes after Iger returned as CEO

The major revamp in the company comes after Iger returned as CEO

The major revamp in the company comes after Iger returned as CEO

In a major revamp, entertainment giant Disney is planning to cut 7,000 jobs. Around 3.6 per cent of Disney's workforce around the world will be affected with the layoffs.

The decision of layoffs are reportedly part of a plan to save $5.5 billion in costs and make the Disney plus streaming service profitable.

"We believe the work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders," said Disney chief executive Bob Iger.

Iger announced the first set of financial results, in the last three months, since his return to the company in November last year. Iger, who had earlier headed Disney for 15 years was replaced by Bob Chapek, who took over as chief executive in February 2020. Chapek was later ousted after Disney's streaming business post a $1.5 billion quarterly loss.

According to reports, it was after Iger's return Disney announced a major shake up in the company.

Since its launch in 2019, the reports revealed a dip in Disney plus subscribers, while its earnings rose.

The latest figures announced by Iger reportedly showed a revenue rise to 8 per cent, the net income was also up by 11 per cent. It was the dip in the subscribers that led to the decision, said reports.

Iger initially stepped down from the role in 2020, and his takeover has already led to major organisational changes for the company. Iger is also establishing three core divisions at the company: Disney entertainment, ESPN, and Disney Parks experiences and products, reported The Verge.

Disney plus added just 2,00,000 subscribers in the US and Canada for a total of 46.6 million, reported The Verge.

The company's streaming service remained its top priority.

He had said that he had tasked a group of executives with designing "a new structure that puts more decision-making back in the hands of our creative teams and rationalises costs."

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