Unites States: Disney Chief Executive Bob Iger has announced that the company is planning to cut 7,000 jobs as part of an effort to make its streaming business profitable.

The layoffs are expected to save $5.5 billion in costs and make the Disney+ streaming service profitable.

The latest steps, including a promise to reinstate a dividend for shareholders, came in response to some of the criticism from activist investor Mr. Nelson Peltz that the “Mouse House was overspending on streaming.”

“We believe the work we are doing to reshape our company around creativity while reducing expenses will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders,” Mr. Iger shared.

According to the CEO, the company’s streaming service remained its top priority.

The job cuts amount to around 3.6 percent of the firm’s workforce across the world.

Mr. Iger made the restructuring announcement alongside financial results for the last three months of 2022. The figures showed that revenue rose 8 percent to $23.5 billion (£19.45 billion) for the period, and net income was up 11 percent to $1.3 billion. During the quarter, the number of Disney+ subscribers fell by around 2.4 million to 161.8 million.

Under the plan to cut costs and return power to creative executives, the company will restructure into three segments, which include an entertainment unit that encompasses film, television, and streaming, a sports-focused ESPN unit, and Disney parks, experiences, as well as products.

“This reorganisation will result in a more cost-effective, coordinated approach to our operations. We are committed to running efficiently, especially in a challenging environment,” Mr. Iger added.

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