Dividing Disney: Company to restructure into three segments – Entertainment, ESPN, and Disney Parks, Experiences and Products – one day after CEO Bob Iger announced 7,000 job cuts
- Walt Disney has unveiled a vast restructuring scheme amid thousands of job cuts
- CEO Robert ‘Bob’ Iger also announced he will step down in the next two years
- The embattled entertainment giant says it hopes to save $5.5 billion in costs
Walt Disney Company has unveiled a vast restructuring scheme 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 core collaborative business segments: Disney Entertainment, ESPN and Disney Parks, Experiences and Products.
The move marks the most significant action since Iger returned to the company as CEO in November, and was revealed just minutes after it posted its most recent quarterly earnings.
During a call with investors, Disney also announced it would be cutting $5.5 billion in costs, which will be made up of $3 billion from content, excluding sports, and the remaining $2.5 billion from non-content cuts.
Walt Disney Company has unveiled a vast restructuring scheme 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 cutting was already underway since last quarter.
Disney also said it would be cutting 7,000 jobs from its workforce which is about 3 percent of the roughly 220,000 people employed. That equates to roughly 166,000 in the U.S. and about 54,000 internationally.
The reorganization has been in the works since Iger returned to the helm, replacing his successor Bob Chapek.
‘For nearly 100 years, storytelling and creativity have fueled The Walt Disney Company, with virtually every interaction we have with our consumers emanating from something creative,’ said Iger in a statement to Business Wire.
‘I am committed to positioning this company for a new era of growth. Our strategic restructuring will return creativity to 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 full portfolio of entertainment media and content businesses globally, including streaming.
Disney also said it would be cutting 7,000 jobs from its workforce which is about 3 percent of the roughly 220,000 people employed. That equates to roughly 166,000 in the U.S. and about 54,000 internationally
ESPN will include ESPN networks and ESPN+ and will be led by Jimmy Pitaro who will will also be responsible for the management and supervision of the company’s sports content.
The streaming business remains a top priority for the company.
‘Every day, I am reminded of what incredible talent we have leading the many facets of this company,’ Iger said.
‘Thanks to my management team and our exceptional business leaders, who have acted quickly and strategically on the important changes we are undertaking today, I am as encouraged as ever by 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 Asia Pacific President, Luke Kang, EMEA President, Jan Koeppen, LATAM President, Diego Lerner and India President K Madhavan.
They will report to Bergman, Walden, and Pitaro as part of their global responsibilities.
Meanwhile, Disney Parks, Experiences and Products which includes the company’s theme parks, cruise line, resort destinations will continue under the leadership of Chairman Josh D’Amaro.
The organizational changes are expected to take effect immediately with results expected to be reported by the end of the fiscal year.
Source: Read Full Article