Disney chief executive Bob Iger says he is cutting 7,000 jobs in a major shake-up of the entertainment giant.
The layoffs are part of a plan to save $5.5bn and make its Disney+ streaming service profitable, which reported its first fall in subscribers since it launched the service in 2019.
Mr Iger said he did “not make this decision lightly”.
He announced the changes alongside ts latest sales figures, his first since he returned to Disney in November.
Commenting on the job cuts, Mr Iger said: “I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I’m mindful of the personal impact of these changes.”
He said the changes would “better position us to weather future disruption and global economic challenges”.
The job cuts amount to around 3.6% of Disney’s workforce around the world.
Meanwhile, Disney reported an 8% rise in sales to $23.5bn (£19.4bn) between October and December last year. Profit also rose, up by 11% to $1.3bn.
However, Disney+ reported a $1.5bn loss and its subscribers fell by around 2.4m to 161.8m.
The plan will see the company restructure into three segments – entertainment which will include film, TV and streaming; sports-focused ESPN and Disney parks, experiences and products.
“This reorganisation will result in a more cost-effective, coordinated approach to our operations,” Mr Iger told analysts on a conference call.
The company’s streaming service remained its top priority, he added.
Disney share price rose by more than 5% in extended trade after the announcement.