7,000 jobs to be cut in Iger’s company ‘transformation’

The Walt Disney Co. will cut about 7,000 jobs as part of an ambitious companywide costsavings plan and “strategic reorganization” announced Wednesday by CEO Bob Iger.

The job cuts amount to about 3% of the entertainment giant’s global workforce and were unveiled after Disney reported quarterly results that topped Wall Street’s forecasts.

Iger returned as CEO in November following a challenging two-year tenure by his handpicked successor, Bob Chapek. The company said the job reductions are part of a targeted $5.5 billion cost savings across the company. As of Oct. 1, Disney employed 220,000 people, of which about 166,000 worked in the U.S. and 54,000 internationally.

In a statement, Iger said Disney is embarking on a “significant transformation” that management believes will lead to improved profitability at the company’s streaming business.

The company, which owns Star Wars, Marvel and Pixar, will focus more on its core brands and franchises, Iger said.

The executive also announced changes to how executives will operate Disney’s various divisions. Specifically, creative executives will now be responsible for determining what movies, TV series or other content to produce, as well as the marketing and distribution.

“Our new structure is aimed at returning greater authority to our creative leaders and making them accountable for how their content performs financially,” Iger said during a call with Wall Street analysts.

In its latest results, solid growth at Disney’s theme parks helped offset tepid performance in its video streaming and movie business.

Disney said Wednesday that it earned $1.28 billion, or 70 cents per share, in the three months through Dec. 31. That compares with net income of $1.1 billion, or 60 cents per share, a year earlier.