Disney CEO Bob Iger has announced sequels for Toy Story, Frozen, and Zootopia as part of his plans to turn around the company’s streaming business.
Mr. Iger stated that sequels are “in the works” at Disney’s animation studio.
Meanwhile, the company reported its first drop in subscriber numbers since the launch of its Disney+ streaming service in 2019.
In addition, Mr. Iger stated that 7,000 jobs would be cut as part of a major restructuring of the entertainment conglomerate.
In a conference call with investors, Mr Iger discussed his plans to monetize some of the company’s most valuable franchises.
“I’m thrilled to announce that our animation studios are working on sequels to some of our most popular franchises, including Toy Story, Frozen, and Zootopia,” he said.
“We’ll have more information about this production soon, but it’s an excellent example of how we’re capitalizing on our unrivaled brands and franchises.”
The announced job cuts represent approximately 3.6% of Disney’s global workforce and are part of a plan to save $5.5 billion (£4.5 billion) and make its Disney+ streaming service profitable. Mr. Iger stated that he did not make this decision lightly.
The changes coincided with the company’s most recent quarterly results, his first since returning to Disney in November.
Mr Iger said the changes would “better position us to weather future disruption and global economic challenges”.
On October 6, 2018, Bob Iger and Mickey Mouse attend Mickey’s 90th Spectacular at The Shrine Auditorium in Los Angeles, California.
Between October and December of last year, Disney reported an 8% increase in sales to $23.5 billion. Profit increased by 11% to $1.3 billion.
However, Disney+ reported a $1.5 billion loss and a 2.4 million drop in subscribers to 161.8 million.
The company will be restructured into three segments: entertainment (film, TV, and streaming); sports-focused ESPN; and Disney parks, experiences, and products.
“This reorganization will result in a more cost-effective, coordinated approach to our operations,” Mr. Iger said during a conference call with analysts.
He added that the company’s streaming service remained its top priority.
Following the announcement, Disney’s stock price increased by more than 5% in after-hours trading.
“Disney has been in quite a bit of trouble over the last year or so, particularly with trying to make its streaming business profitable,” said Freddy Colquhoun, investment director at JM Finn.
However, he stated that the results “were actually really reassuring” and exceeded expectations.
The changes by Disney address some of the criticisms leveled in recent months by billionaire activist investor Nelson Peltz, who accused the company of overspending on its streaming business.