Disney CEO Bob Iger announced that the company is going to layoff 7,000 employees as part of a company-wide reorganization plan to cut costs. That represents about 3.2% of Disney's 220,000 employees.
"I have enormous respect and appreciate for the dedication of our employees worldwide," Iger said. "While this is necessary to address the challenges we face today, I do not make this decision lightly."
Disney CFO Christine McCarthy said Disney is looking to shed $5.5 billion in spending and will cut $2.5 billion in non-content costs and $3 billion in non-sports content costs.
Iger said that Disney will be reorganized into three divisions; Disney Entertainment, which will be co-chaired by Dana Walden and Alan Bergman, ESPN, which will be helmed by Jimmy Pitar, and Disney Parks, Experiences, and Products, which will be run by Josh D'Amaro.
"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. "Our former structure severed that link and must be restored. Moving forward, our creative teams will determine what content we're making, how it is distributed and monetized, and how it gets marketed."