(BURBANK, Calif.) — Disney is set to lay off 7,000 workers, CEO Bob Iger said on the company’s earnings call on Wednesday.
The company is targeting a total of $5.5 billion in cost savings, Iger said. In all, $3 billion in cuts will come from content, excluding sports, he added; while $2.5 billion will come from non-content cuts.
“This reorganization will result in a more cost-effective, coordinated and streamlined approach to our operations,” Iger said. “I do not make this decision lightly.
The layoffs amount to roughly 3% of the company’s 220,000 workers worldwide, according to a securities filing made in October.
The job cuts will coincide with a restructuring that will divide the company into three core businesses: Disney Entertainment, ESPN and Disney Parks, Iger said.
Shares of Disney rose nearly 8% in after-hours trading.
The layoffs arrive amid a string of layoffs in the media industry. Warner Bros. Discovery, Dotdash Meredith and Vox Media are among the companies that have slashed jobs in recent months.
Disney is the parent company of ABC News.
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