7,000 workers will be out of Disney, the company aims to save more than $ 5 billion

Walt Disney, associated with the entertainment business, has decided to lay off 7,000 workers. Major restructuring is being done under the leadership of Bob Iger, who has been re-appointed as the 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 stock rose by more than four percent. workers being fired company accounts for about 3.6 percent of the total workforce. The company’s activist investor Nelson Peltz said Disney was spending too much. After this, the company has also promised to restore the dividend for the shareholders. The company has made preparations for restructuring in some segments. These include film, television and streaming as well as sports channel ESPN. “The restructuring will reduce costs for our business. We remain committed to operating with efficiency in a challenging environment,” Iger said in a conference call.

He said that 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 be increased rapidly. Iger said he would ask the company’s board to restore the dividend to shareholders by the end of the year.

Medical equipment and electronics maker at the end of last month Philips had told that it would lay off 6,000 workers. The company has been hit 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 had told that Philips had to take a difficult but necessary decision to cut the workforce over the next two years. “The past year has been difficult for Philips and our stakeholders. We are taking steps to improve performance,” Jakobs said in a statement. This Netherlands company had a loss of 105 million euros in the fourth quarter of the previous year. The company’s loss for the previous full year was $1.6 billion. About two years ago, Philips recalled a large number of its appliances used to treat people with sleep apnea.