The Walt Disney Company plans to cut 7,000 jobs as part of a plan to find $5.5 billion in cost reductions, CEO Robert Iger said in the company’s quarterly conference call. $3 billion of the cuts will come from content costs, and $2.5 billion in operating costs across the company. Among other purposes, the money freed up by the cost cuts will be returned to shareholders in the form of dividends.
The company is also being reorganized, into three business segments: Disney Entertainment, which will include all entertainment media and content businesses, including streaming; ESPN; and Disney Parks, Experiences and Products, which will include Disney’s publishing (including Marvel Comics), games, and consumer products businesses, along with the theme parks, resorts, and cruise line. Iger also made a point of saying that creative leaders will be in control and responsible for the financial performance of the content created.
It is too early to say whether the planned job cuts will include positions at Marvel; cost-cutting at competitor Warner Bros. resulted in multiple rounds of draconian staff cuts at DC.
Source: ICv2
