Disney said Wednesday it will cut 7,000 jobs, the latest corporate giant to lay off workers, as the Hollywood giant attempts to rein in costs.
"While this is necessary to address the challenges we're facing today, I do not make this decision lightly," CEO Bob Iger said during a call discussing the company's latest quarterly results. "I have enormous respect and appreciation for the talent and dedication of our employees worldwide. And I'm mindful of the personal impact of these changes."
The layoffs represent about 3.2% of Disney's roughly 220,000 employees as of Oct. 1.
Though the most closely watched employment report in the US indicated a surprisingly booming job market in January, Disney is just the latest company to embark on large layoffs. Workforce reductions have been particularly noticeable in tech, with Amazon, Twitter, Microsoft, Meta and Google all letting go of thousands of workers in recent months.
Disney's job cuts are part of a $5.5 billion cost-saving plan, Iger said. The company aims to save $2.5 billion on what it calls "non-content" costs and said it will carve out another $3 billion from content costs, excluding sports.
"We are going to take a really hard look at the cost for everything that we make, both across television and film," Iger said.
Though Disney reported its first decline in Disney Plus subscribers on Wednesday, its profitability improved and investors appeared to cheer the cost-saving initiative and news that Disney will resume a dividend. Shares were up 5.7% at $118.18 in recent after-hours trading.