The Walt Disney Company announced plans Wednesday to cut about 4% of its entire workforce, resulting in the layoffs of 7,000 employees. The restructuring plan is part of an effort to reduce costs and reward shareholders.
CEO Bob Iger revealed the news during an earnings call on Wednesday, saying that the layoffs are necessary for Disney to remain competitive in a rapidly changing media landscape. He also reaffirmed Disney's commitment to its Connecticut-based ESPN division despite the job cuts.
"We are strategically positioning our businesses for the future, creating a more effective, global framework to serve consumers worldwide," Iger said in a statement. "This reorganization will help us support our growth strategy and maximize shareholder value."
The layoffs come as streaming services have become increasingly popular with consumers, leading many companies to shift their focus away from traditional television and film production. Disney has been no exception; with the launch of its own streaming service, Disney+, which has already seen success with millions of subscribers since its launch last year.
What also has hurt the company, is continued "woke" movies and television shows that goes against the tradional American family values.
Disney's stock rose 4.7% to $117.22 in after-hours trading following Iger's announcement on Wednesday. The company expects the cost-cutting measures to save around $5.5 billion over two years while still allowing them to invest in new projects and content for their streaming service.