By Thomas Buckley | Bloomberg
Walt Disney’s Chief Executive Officer Bob Iger announced plans for a dramatic restructuring of the world’s largest entertainment company that includes cutting 7,000 jobs and $5.5 billion in cost savings.
The reductions include lower spending on programming and $2.5 billion in non-content-related cuts. About $1 billion of the savings are already underway, Iger said on a conference call with investors Wednesday.
As part of the change, Disney’s CEO also announced that the company will be reorganized into three divisions: an entertainment unit that includes its main TV and film businesses, the ESPN sports networks, and the theme-park unit, which includes cruise ships and consumer products.