Disney to cut 7,000 jobs in major revamp to make streaming biz profitable

Walt Disney Co on Wednesday announced a sweeping restructuring under recently reinstated CEO Bob Iger, cutting 7,000 jobs as part of an effort to save $5.5 billion in costs and make its streaming business profitable.

The layoffs represent an estimated 3.6% of Disney’s global workforce.

Shares of Disney rose 4.7% to $117.22 in after-hours trading.

The steps, including a promise to reinstate a dividend for shareholders, addressed some of the criticism from activist investor Nelson Peltz that the Mouse House was overspending on streaming.

“We are pleased that Disney is listening,” a spokesperson for Peltz’s Trian Group said in a statement late Wednesday.