With the global entertainment and theme parks company reporting disappointing profits in its latest financial quarter earnings, Walt Disney Co. Chief Executive, Bob Iger has revealed plans to simplify the business’ operations, cut US$5.5 billion in costs and reduce 7,000 jobs from its global workforce of around 220,000 employees.
Iger also advised that the company would be reorganising into three divisions - a Parks, Experiences and Products unit, an ESPN division and Disney Entertainment.
The move, described by CNBC as “the most significant action” Iger has taken since returning to the company as Chief Executive in November last year, follows about US$1 billion in cost cutting was already underway in the last quarter.
It said 50% of the cost savings would come from marketing expenses, 30% from workforce savings and 20% of the cost savings would come from less spending on technology, procurement and other expenses.
The staff cuts will see about 3% of the roughly 220,000 people it employed as of October last year, with around 166,000 employees in the USA and about 54,000 internationally.
The reorganisation will see the entertainment group led by Dana Walden and Alan Bergman, who CNBC says are each considered contenders to take over for Iger in less than two years. ESPN Chairman Jimmy Pitaro will lead the ESPN segment, while Josh D’Amaro, will remains as the head of Disney’s Parks, Experiences and Products segment.
Commenting on the changes and the importance of the company’s creative teams, Iger said they would put more “decision-making back in the hands of our creative teams and rationalise costs”.
Iger added “our company is fuelled by storytelling and creativity, and virtually every dollar we earn, every transaction, every interaction with our consumers, emanates from something creative.
“I have always believed that the best way to spur great creativity is to make sure the people who are managing the creative processes feel empowered.”
Image: Bob Iger with Mickey Mouse at the Mickey's 90th Spectacular event in Los Angeles, USA in 2018. Credit: Shutterstock/Kathy Hutchins.
About the author
Nigel Benton
Co-founder/Publisher, Australasian Leisure Management
Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.
With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.
Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.
In addition to publishing, Nigel speaks on marketing communications at a range of industry events.
He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).
In 2020, he launched the new Asian Leisure Business website.
As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.
Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.
His philosophy on life is to be kind to all and to indulge those that you love.
His passions include family, Newcastle United and motorcycles (especially British ones) as well, until February 2025 when she left us, caring a little pug named Stella.
Click here to connect with him via LinkedIn.
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