7,000 workers will be left out of Disney, the company intends to save more than 5,000 million dollars

Walt Disney, associated with show business, has decided to lay off 7,000 workers. A major restructuring is underway under the leadership of Bob Iger, who has been reappointed as CEO of the company. The company aims to save around $5.5 billion in costs and make its streaming service profitable.

Following Disney’s announcement, the company’s shares rose more than four percent. The laid-off workers make up about 3.6 percent of the company’s total workforce. The company’s activist investor, Nelson Peltz, said Disney was spending too much. Following this, the company has also promised to return the dividend to shareholders. The company has made preparations for restructuring in some segments. These include film, television and broadcast, as well as the sports channel ESPN. “The restructuring will reduce the costs of our business. We remain committed to operating efficiently in a challenging environment,” Iger said in a conference call.

He said the streaming service is the company’s top priority. Iger said the company will focus more on core brands and franchises. Along with this, general entertainment content will increase rapidly. Iger said he would ask the company’s board to reinstate the shareholder dividend by the end of the year.

Late last month, electronics and medical equipment maker Philips said it would lay off 6,000 workers. The company has been affected by a large number of recalls of defective sleep respirators. Philips laid off 4,000 workers a few months ago. The company’s chief executive, Roy Jakobs, said Philips had to make a difficult but necessary decision to reduce the workforce over the next two years. “Last year was difficult for Philips and our shareholders. We are taking steps to improve performance,” Jakobs said in a statement. This Dutch company had a loss of 105 million euros in the fourth quarter of the previous year. The company’s loss for the prior full year was $1.6 billion. About two years ago, Philips recalled a large number of its devices used to treat people with sleep apnea.

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