Disney said Wednesday that it plans to reorganize into three segments.

The media and entertainment giant said it would now be made up of three divisions:

  • Disney Entertainment, which includes most of its streaming and media operations.
  • A division of ESPN that includes the television network and streaming service.
  • A unit of Parks, Experiences and Products

The move marks the most significant action Bob Iger has taken since he returned to the company as chief executive in November. Disney announced the changes minutes later. posted its most recent quarterly earnings.

On Wednesday, during its quarterly earnings call with investors, Disney also announced it would cut $5.5 billion in costs, to be made up of $3 billion of content, excluding sports, and the remaining $2.5 billion of non-content cuts.

Disney also said it would cut 7,000 jobs from its workforce. That would be about 3% of the roughly 220,000 people he employed as of October 1. according to an SEC filingwith approximately 166,000 in the US and around 54,000 internationally.

Disney shares rose more than 8% in aftermarket trading.

Media companies, like Discovery by Warner Bros., have been cutting spending on content and looking to make their streaming businesses profitable. Increased competition has led to a slowdown in subscriber growth, and companies have been looking for new avenues of revenue growth. Some, like Disney+ and Netflix, have added cheaper ad-supported options.

Media companies, like Discovery by Warner Bros., have been cutting spending on content and looking to make their streaming businesses profitable. Increased competition has led to a slowdown in subscriber growth, and companies have been looking for new avenues of revenue growth. Some, like Disney+ and Netflix, have added cheaper ad-supported options.

The shakeup has been underway since Iger returned to the helm of Disney, replacing his hand-picked successor, Bob Chapek.

Elimination of Chapek It came shortly after Disney reported its fiscal fourth quarter earnings, disappointing in earnings and certain key revenue segments. Chapek also warned that Disney’s strong streaming numbers would diminish in the future. He had also told employees soon after that Disney would cut costs through hiring freezes, layoffs and other measures.