Disney to cut 7,000 jobs

LOS ANGELES – The Walt Disney Company on Wednesday said it would cut about 7,000 jobs as part of a “significant transformation” announced by Chief Executive Officer Bob Iger.

The cuts are about 3% of the entertainment industry’s global workforce and were announced Wednesday after Disney reported quarterly results that beat Wall Street’s forecasts.

Iger returned as CEO in November after the challenging two-year tenure of his handpicked successor, Bob Chapek. The company said the job cuts were part of a $5.5 billion cost savings plan targeted across the company. As of October 1, Disney employed 220,000 people, of which about 166,000 work in the US and 54,000 work abroad.

In its latest results, solid growth at Disney’s theme parks helped offset dismal performance in the video and movie streaming business.

Disney said Wednesday that it earned $1.28 billion, or 70 cents per share, in the three months to December 31. That compares to net income of $1.1 billion. , or 60 cents per share, a year earlier.

Excluding one-time items, Disney earns 99 cents per share. According to FactSet, analysts average adjusted earnings expectations of 78 cents per share.

Revenue rose 8% to $23.51 billion from $21.82 billion a year earlier. Analysts had expected revenue of $23.44 billion.

The latest results mark the first quick quarterly results since Bob Iger returned as CEO in November following the challenging two-year tenure of his handpicked successor, Bob. Chapek.

In a statement, Iger said the company is embarking on a “significant transformation” that management believes will help improve the profitability of the company’s streaming business.

The company said Disney+ ended the quarter with 161.8 million subscribers, down 1% from Oct. 1. Hulu and ESPN+ both reported a 2% increase in paid subscribers for the quarter.

Shares of Disney, based in Burbank, California, were up 3% in after-hours trading.