Walt Disney Company has announced a major restructuring effort aimed at cutting costs and streamlining its operations. The company plans to cut 7,000 jobs, or about 4% of its workforce, and reduce expenses by $5.5 billion over the next two years.
The job cuts will come from across the company’s media and entertainment divisions, including its parks and resorts, direct-to-consumer, and international businesses. The cuts are part of Disney’s larger effort to reduce its costs and adapt to the changing media landscape, which has been accelerated by the COVID-19 pandemic.
In a statement, Bob Chapek, CEO of Disney, said that the company is “making the difficult decision to reduce our workforce” in order to create a more efficient and effective organization. He added that the restructuring will allow the company to better serve its customers and position itself for long-term success in the rapidly changing media landscape.
Disney has been hit hard by the pandemic, which has led to the closure of its theme parks, resorts, and other attractions. The company has been forced to adjust its business model in response to the changing environment, and the restructuring is part of that effort.
In addition to the job cuts, Disney is also planning to reduce its investment in certain businesses, including its direct-to-consumer and international divisions. The company will focus its efforts on its core franchises and businesses, including its theme parks and Disney+ streaming service.
The company is also planning to invest in new technologies, including artificial intelligence and automation, in order to drive efficiency and reduce costs. The company will also focus on expanding its direct-to-consumer offerings, including its streaming services, to reach more customers and grow its revenue.
The restructuring is a significant step for Disney, which has long been a major player in the media and entertainment industry. The company has been known for its ability to adapt to changing trends and stay ahead of the curve, and the restructuring is a reflection of that legacy.
However, the job cuts and cost reductions are likely to be met with criticism from some quarters, as the company’s employees and fans are likely to feel the impact of the changes. The company has pledged to provide support and resources to those who are impacted by the restructuring, and has promised to maintain its commitment to its employees and customers.
In conclusion, Disney’s restructuring effort is a response to the challenging business environment brought on by the COVID-19 pandemic, and the company’s efforts to remain competitive and relevant in the changing media landscape. While the job cuts and cost reductions are likely to be met with some criticism, the company believes that the restructuring will position it for long-term success and allow it to better serve its customers.