Disney Restructures Business Into Three Operating Units, Announces 7,000 Job Cuts
February 8, 2023
The Walt Disney Co. Feb. 8 announced it has restructured internal operations to return management control, accountability and fiscal result responsibility to content creators through the establishment of three core business units: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products.
Speaking on the fiscal call, CEO Bob Iger, who late last year replaced his successor Bob Chapek as chief executive, said the restructuring would include the elimination of 7,000 jobs worldwide as part of $5.5 billion in projected cost savings.
“While this is necessary to address the challenges we are facing today, I do not make this decision lightly,” Iger said. “I have enormous respect and appreciation for the talent and dedication of our employees worldwide and I am mindful of the personal impact of these changes.”
Alan Bergman and Dana Walden have been named co-chairmen of Disney Entertainment, which includes Disney Studios, Disney+, Hulu and television operations worldwide.
Jimmy Pitaro will continue as chairman of ESPN, which includes ESPN networks and the ESPN+ streaming service. Josh D’Amaro continues as chairman of Disney Parks, Experiences and Products.
Iger said Disney’s mission statement remains driven by “great storytelling and creativity,” which he said requires returning entertainment operational control to content creators.
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Content teams will now be in charge of determining what content is created, how it is distributed and monetized, and how it is marketed. Managing costs, maximizing revenue and driving growth from the content being created will be the teams’ respective responsibility, according to Iger.
“Virtually every dollar we earn, every transaction, every interaction with our consumers emanates from something created,” Iger said. “I’ve always believed that the best way to spur great creativity, is to make sure the people who are managing the creative processes feel empowered.”