Disney will lay off 7,000 workers as it cuts costs and reorganizes

Disney announced Wednesday that it intends to reorganize into three segments. The media and entertainment conglomerate announced that it would now be divided into three divisions.

Disney Entertainment, which includes the majority of the company’s streaming and media operations, ESPN TV network / streaming service and Parks, Experiences, Products division.

The move is the most significant action taken by Bob Iger since his return to the company as CEO in November. Disney made the announcement minutes after reporting its most recent quarterly earnings.

During its quarterly earnings call with investors on Wednesday, Disney also announced a $5.5 billion cost-cutting plan, with $3 billion coming from content (excluding sports) and the remaining $2.5 billion coming from non-content cuts.

Disney also announced the elimination of 7,000 jobs from its workforce. According to an SEC filing, that would be about 3% of the approximately 220,000 people it employed as of Oct. 1, with approximately 166,000 in the United States and approximately 54,000 internationally.