The transformation Iger mentions in his announcement involves a restructuring of Disney, and the resulting three divisions cover the different branches of the company in a fairly logical manner. There’s now Disney Entertainment, which involves film, television, and Disney+, ESPN, which focuses on the main ESPN network and ESPN+, and Parks, Experiences, and Products, which covers the company’s theme parks and various other consumer products.
However, this transformation does not come without a significant cost. Speaking on Wednesday’s investor earnings call, Iger explained how the changes will result in the loss of about 7,000 jobs:
“We are targeting $5.5 billion of cost savings across the company […] in general, the savings will come from reductions in [selling, general, and administrative expenses] and other operating costs across the company. To help achieve this, we will be reducing our workforce by approximately 7,000 jobs. While this is necessary to address the challenges we’re facing today, I do not make this decision lightly.”
Being one of the most recognizable and popular entertainment brands in the world, it’s highly likely that Disney’s decisions and their results will be closely watched by other studios and companies. Hopefully this doesn’t mean the loss of even more jobs across the entertainment industry, but one gets the sense that such “significant transformation” in showbiz is only just beginning.