LOS ANGELES: The Walt Disney Co. will cut about 7,000 jobs as part of an ambitious companywide cost-savings plan and “strategic reorganization” announced Wednesday by CEO Bob Iger.
The job cuts amount to about 3 percent of the entertainment giant’s global workforce and were unveiled after Disney reported quarterly results that topped Wall Street’s forecasts.
Iger returned as CEO in November following a challenging two-year tenure by his handpicked successor, Bob Chapek. The company said 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 which about 166,000 worked in the US and 54,000 internationally.
In a statement, Iger said Disney is embarking on a “significant transformation” that management believes will lead to improved profitability at the company’s streaming business.
The company, which owns Star Wars, Marvel and Pixar, will focus more on its core brands and franchises, Iger said.
The executive also announced changes to how executives will operate Disney’s various divisions. Specifically, creative executives will now be responsible for determining what movies, TV series or other content to produce, as well as the marketing and distribution.
“Our new structure is aimed at returning greater authority to our creative leaders and making them accountable for how their content performs financially,” Iger said during a call with Wall Street analysts.
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. That compares with net income of $1.1 billion, or 60 cents per share, a year earlier.
Excluding one-time items, Disney earned 99 cents per share. Analysts, on average, were expecting adjusted earnings of 78 cents per share, according to FactSet.
Revenue grew 8 percent to $23.51 billion from $21.82 billion a year earlier. Analysts were expecting revenue of $23.44 billion.
Disney said sales at its parks, experiences and products segment grew 21 percent to $8.74 billion, from $7.23 billion a year earlier. While revenue for the segment that includes Disney’s movie business edged up 1 percent to $14.78 billion from $14.59 billion a year earlier.
The company’s direct-to-consumer business, which includes its streaming services, posted a $1.1 billion operating loss amid higher programming and production costs at Disney+ and Hulu.
Disney+ ended the quarter with 161.8 million subscribers, down 1 percent from since Oct. 1. Hulu and ESPN+ each posted a 2 percent increase in paid subscribers during the quarter.
The company rolled out new price tiers for its US Disney+ service in December that raised the monthly price for ad-free viewing from $7.99 to $10.99 and created a new basic Disney+ service with ads that costs $7.99 a month.
Management said Wednesday that Disney+ plus will achieve profitability by the end of its next fiscal year in September 2024.
The latest results marked the first quarterly snapshot since Iger’s return as CEO.
The move to revamp the company and slash costs comes as Disney is under pressure to turn its business around.
Activist investor Nelson Peltz, CEO of Trian Fund Management, is vying for a seat on Disney’s board of directors, arguing that the company’s recent operating performance has been disappointing and the result of self-inflected problems stemming from failed succession planning efforts, a flawed direct-to-consumer strategy and “over-the-top” compensation practices, among other concerns.
Disney has urged shareholders to vote against Peltz and last month named board member Mark Parker as its chairman. Parker, who also serves as executive chairman at Nike Inc., has been tapped to head Disney’s newly created succession planning committee, which will advise the board on CEO succession planning.
Iger also announced Wednesday that he intends to ask the board to approve the reinstatement of a “modest” dividend by the end of this year. The company suspended its dividend in the spring of 2020, in the early days of the pandemic.
Shares in Disney, which is based in Burbank, California, rose almost 6 percent in after-hours trading.
Disney to cut 7,000 jobs in Iger’s company ‘transformation’
https://arab.news/w34q4
Disney to cut 7,000 jobs in Iger’s company ‘transformation’
- Iger said Disney is embarking on a “significant transformation” that management believes will lead to improved profitability at the company’s streaming business
A look back at how Arab News marked its 50th anniversary
- In a year crowded with news, the paper still managed to innovate and leverage AI to become available in 50 languages
- Golden Jubilee Gala, held at the Diplomatic Quarter in Riyadh, now available to watch on YouTube
RIYADH: In 2025, the global news agenda was crowded with headlines concerning wars, elections and rapid technological change.
Inside the newsroom of Arab News, the year carried additional weight: Saudi Arabia’s first English-language daily marked its 50th anniversary.
And with an industry going through turmoil worldwide, the challenge inside the newsroom was how to turn a midlife crisis into a midlife opportunity.
For the newspaper’s team members, the milestone was less about nostalgia than about ensuring the publication could thrive in a rapidly changing and evolving media landscape.
“We did not want just to celebrate our past,” said Faisal J. Abbas, editor-in-chief of Arab News. “But more importantly, we were constantly thinking of how we can keep Arab News relevant for the next five decades.”
The solution, he added, came down to two words: “Artificial intelligence.”
For the Arab News newsroom, AI was not a replacement for journalism but as a tool to extend it.
“It was like having three eyes at once: one on the past, one on the present, and one on the future,” said Noor Nugali, the newspaper’s deputy editor-in-chief.
One of the first initiatives was the 50th anniversary commemorative edition, designed as a compact historical record of the region told through Arab News’ own reporting.
“It was meant to be like a mini history book, telling the history of the region using Arab News’ archive with a story from each year,” said Siraj Wahab, acting executive editor of the newspaper.
The issue, he added, traced events ranging from the outbreak of the Lebanese civil war in 1975 to the swearing-in of Donald Trump, while also paying homage to former editors-in-chief who shaped the newspaper’s direction over five decades.
The anniversary edition, however, was only one part of a broader strategy to signal Arab News’ focus on the future.
To that end, the paper partnered with Google to launch the region’s first AI-produced podcast using NotebookLM, an experimental tool that synthesizes reporting and archival material into audio storytelling.
The project marked a regional first in newsroom-led AI audio production.
The podcast was unveiled during a special 50th anniversary ceremony in mid-November, held on the sidelines of the Arab Media Forum, hosted by the Dubai Future Foundation. The event in the UAE’s commercial hub drew regional media leaders and officials.
Remarks at the event highlighted the project as an example of innovation in legacy media, positioning Arab News as a case study in digital reinvention rather than preservation alone.
“This is a great initiative, and I’m happy that it came from Arab News as a leading media platform, and I hope to see more such initiatives in the Arab world especially,” said Mona Al-Marri, director-general of the Government of Dubai Media Office, on the sidelines of the event.
“AI is the future, and no one should deny this. It will take over so many sectors. We have to be ready for it and be part of it and be ahead of anyone else in this interesting field.”
Behind the scenes, another long-form project was taking shape: a documentary chronicling Arab News’ origins and its transformation into a global, digital-first newsroom.
“While all this was happening, we were also working in-house on a documentary telling the origin story of Arab News and how it transformed under the current editor into a more global, more digital operation,” said Nugali.
The result was “Rewriting Arab News,” a documentary examining the paper’s digital transformation and its navigation of Saudi Arabia’s reforms between 2016 and 2018. The film charted editorial shifts, newsroom restructuring and the challenges of reporting during a period of rapid national change.
The documentary was screened at the Frontline Club in London, the European Union Embassy, Westminster University, and the World Media Congress in Bahrain. It later became available on the streaming platform Shahid and onboard Saudi Arabian Airlines.
It was also nominated for an Association for International Broadcasting award.
In early July, a special screening of the documentary took place at the EU Embassy in Riyadh. During the event, EU Ambassador to Saudi Arabia Christophe Farnaud described the film as an “embodiment” of the “incredible changes” that the Kingdom is undergoing.
“I particularly appreciate … the historical dimension, when (Arab News) was created in 1975 — that was also a project corresponding to the new role of the Kingdom,” Farnaud said. “Now the Kingdom has entered a new phase, a spectacular phase of transformation.”
Part of the documentary is narrated by Prince Turki Al-Faisal, the former Saudi ambassador to the US, who in the film delves into the paper’s origins.
The grand slam of the anniversary year was the Golden Jubilee of Arab News gala, held in late September in Riyadh’s Diplomatic Quarter.
Hosted by the Dean of Diplomatic Corps in Saudi Arabia and Ambassador of Djibouti to Riyadh Dya-Eddine Said Bamakhrama, the evening featured a keynote address by Prince Turki, who spoke about Arab News’ founding under his father, the late King Faisal, and its original mission to present the Kingdom to the English-speaking world.
Arab News was established in Jeddah in 1975 by brothers Hisham and Mohammed Ali Hafiz under the slogan to give Arabs a voice in English while documenting the major transformations taking place across the Middle East.
The two founders were honored with a special trophy presented by Prince Turki, Assistant Media Minister Abdullah Maghlouth, Editor-in-Chief Abbas, and family member and renowned columnist Talat Hafiz on behalf of the founders.
During the gala, Abbas announced Arab News’ most ambitious expansion yet: the launch of the publication in 50 languages, unveiled later at the World Media Congress in Madrid in cooperation with Camb.AI.
The Madrid launch in October underscored Arab News’ aim to reposition itself not simply as a regional paper, but as a global platform for Saudi and Middle Eastern perspectives.
The event was attended by Princess Haifa bint Abdulaziz Al-Mogrin, the Saudi ambassador to Spain; Arab and Spanish diplomats; and senior editors and executives.
As the anniversary year concluded, Arab News released the full video of the Golden Jubilee Gala to the public for the first time, making the event accessible beyond the room in which it was held.
For a newspaper founded in an era of typewriters and wire copy, the message of its 50th year was clear: longevity alone is not enough. Relevance, the newsroom concluded, now depends on how well journalism adapts without losing sight of its past.
