The Walt Disney Co. is slashing 7,000 jobs worldwide to address a $5.5 billion loss as former CEO Bob Iger returns to help build back the company.

The job cuts were announced on Wednesday during Disney's first-quarter earnings report.

The Walt Disney Co. is eliminating 7,000 jobs worldwide, or more than 3 percent of its workforce, as CEO Bob Iger aims to slash a stunning $5.5 billion in spending in an attempt to save the once formidable company. https://t.co/1kjS4I2VrZ

— Breitbart News (@BreitbartNews) February 9, 2023

The announcement

“I have enormous respect and appreciation for the dedication of our employees worldwide,” he said.

“While this is necessary to address the challenges we face today, I do not make this decision lightly," he added.

Bob Iger Outlines New Disney Org Structure, With 7,000 Layoffs Planned https://t.co/Acmn7Xw974

— The Hollywood Reporter (@THR) February 8, 2023

A new company structure

"On Wednesday, the executive outlined his plan to swiftly restructure the company, effectively dismantling the Disney Media and Entertainment Distribution group created by former CEO Bob Chapek in 2020," the Hollywood Reporter noted.

"The new structure will have three divisions: Disney Entertainment, which will include the film and TV assets, as well as Disney+; ESPN, which will include ESPN and ESPN+; and Parks, Experiences and Products, which will include the theme parks and consumer products teams," it added.

2023 Layoffs: Disney To Cut 7,000 https://t.co/9Hx4BFJpZC pic.twitter.com/ujYeqqYwFE

— Forbes (@Forbes) February 8, 2023

Disney has about 220,000 workers worldwide, with the cuts impacting about 3% of the company. The cuts are largely focused on the production side rather than the theme parks, according to the details of the statement.

The company's announcement follows several media and tech companies reporting layoffs in recent weeks. Others have included Netflix, Paramount, and Warner Bros.

Disney's stock took a massive drop of more than 40% in 2022 under former CEO Bo Chapek. He was fired in November with Iger returning to the role.

Many have blamed Disney's "woke" focus on LGBTQ content in its media, especially in children's programs, as a factor in its downward trend. Iger appears to be focused on the company's financials, however, and has made no major announcements about a turn from its content decisions.

Disney and other companies are struggling under the Biden administration's policies as well, with generation-high inflation making spending more difficult for nearly all Americans.