Disney divides the business into three main segments: entertainment, ESPN and parks
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Disney splits business into three main segments – entertainment, ESPN and parks – as Bob Iger restructures after losing boardroom battle with shareholder Nelson Peltz
- Walt Disney has unveiled a sweeping restructuring plan amid thousands of job cuts
- CEO Robert ‘Bob’ Iger also announced that he will step down in the next two years.
- The embattled entertainment giant says it hopes to save $5.5 billion in costs
The Walt Disney Company has unveiled a sweeping restructuring plan amid thousands of job cuts and the announcement that CEO Robert ‘Bob’ Iger will step down in the next two years.
The embattled entertainment company will be organized into three primary collaborative business segments: Disney Entertainment, ESPN and Disney Parks, Experiences and Products.
The move marks the most significant move since Iger returned to the company as CEO in November and was revealed minutes after he posted his latest quarterly earnings.
During a call with investors, Disney also announced it would cut $5.5 billion in costs, which will be made up of $3 billion of content, excluding sports, and the remaining $2.5 billion of non-content cuts.
The Walt Disney Company has unveiled a sweeping restructuring plan amid thousands of job cuts and the announcement that CEO Robert ‘Bob’ Iger will step down in the next two years.
Disney executives said about $1 billion in cost cuts were already underway since the last quarter.
Disney also said it would cut 7,000 jobs from its workforce, which is about 3 percent of the roughly 220,000 people employed. That works out to about 166,000 in the US and about 54,000 internationally.
The shakeup has been in the works since Iger returned to the helm, replacing his successor Bob Chapek.
“For nearly 100 years, storytelling and creativity have driven The Walt Disney Company, and virtually every interaction we have with our consumers emanates from something creative,” Iger said in a statement to commercial wire.
‘I am committed to positioning this company for a new era of growth. Our strategic restructuring will put creativity back at the center of the company, increase accountability, improve results and ensure the quality of our content and experiences.”
Disney Entertainment will be co-chaired by Alan Bergman and Dana Walden, who will be responsible for the company’s entire portfolio of entertainment media and content businesses globally, including streaming.
Disney also said it would cut 7,000 jobs from its workforce, which is about 3 percent of the roughly 220,000 people employed. That works out to about 166,000 in the US and about 54,000 internationally.
ESPN will include the ESPN and ESPN+ networks and will be led by Jimmy Pitaro, who will also be responsible for managing and overseeing the company’s sports content.
The transmission business continues to be a priority for the company.
“Every day, I am reminded of the incredible talent we have leading the many facets of this company,” said Iger.
“Thanks to my management team and our exceptional business leaders, who have acted quickly and strategically on the important changes we are making today, I am more excited than ever about what the future holds for The Walt Disney Company.”
Outside of North America, the company’s media, entertainment and sports content will continue to be managed regionally by President of Asia Pacific Luke Kang, President of EMEA Jan Koeppen, President of LATAM Diego Lerner and President of India, K Madhavan.
They will report to Bergman, Walden and Pitaro as part of their global responsibilities.
Meanwhile, Disney parks, experiences and products, including the company’s theme parks, cruise line and resort destinations, will continue under the leadership of Chairman Josh D’Amaro.
The organizational changes are expected to take effect immediately and results are expected to be reported at the end of the fiscal year.