The Walt Disney Co. said Wednesday it will cut about 7,000 jobs as part of a "significant transformation" announced by CEO Bob Iger. The job cuts, which amount to about 3% of the company's global workforce, were announced Wednesday after Disney reported quarterly results that topped Wall Street’s forecasts, the AP reports. Iger returned as CEO in November following a challenging two-year tenure by his handpicked successor, Bob Chapek. The company says the job reductions are part of a targeted $5.5 billion cost savings across the company. As of Oct. 1, Disney employed 220,000 people, of whom about 166,000 worked in the US and 54,000 internationally.
"I have enormous respect and appreciate for the dedication of our employees worldwide," Iger said. "While this is necessary to address the challenges we face today, I do not make this decision lightly." In its latest results, solid growth at Disney's theme parks helped offset tepid performance in its video streaming and movie business. Disney said Wednesday that it earned $1.28 billion, or 70 cents per share, in the three months through Dec. 31, up from 60 cents per share a year earlier. Revenue grew 8% to $23.51 billion from $21.82 billion a year earlier. Analysts were expecting revenue of $23.44 billion. The company said Disney+ ended the quarter with 161.8 million subscribers, down 1% from Oct. 1. Hulu and ESPN+ each posted a 2% increase in paid subscribers during the quarter.
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