The return of Bob Iger to Walt Disney’s (NYSE:DIS) CEO job in November promised a reversal of the corporate’s latest fortunes – and a few doubtlessly massive adjustments to the corporate’s construction.

That can embrace slicing 7,000 staff, Iger confirmed on the corporate’s earnings convention name (nonetheless ongoing) following an earnings beat that pushed the inventory increased after hours. Iger additionally goosed the inventory to a 9% acquire by mentioning attempting to revive Disney’s dividend this yr.

“I’ve all the time believed that one of the simplest ways to spur nice creativity is to ensure the people who find themselves managing the artistic processes really feel empowered,” Iger mentioned. “Subsequently, our new construction is geared toward returning larger authority to our artistic leaders and making them accountable for the way their content material performs, financially. Our former construction severed that hyperlink and it have to be restored.”

Meaning reforming into three companywide enterprise models: Disney Leisure, led by Alan Bergman and Dana Walden; ESPN, nonetheless led by Jimmy Pitaro; and Disney Parks, Experiences and Merchandise, nonetheless led by Josh D’Amaro. With ESPN break up off from the previous Disney Media, Leisure and Distribution, it’s going to encapsulate ESPN Networks, ESPN+ and ESPN Worldwide.

Alongside that may come a push for effectivity that targets $5.5B in price financial savings.

Reductions to non-content prices will complete some $2.5B, with $1B in financial savings already below approach, Iger mentioned. That can incorporate slicing the workforce by 7,000 jobs.

On the content material facet, “we anticipate to ship roughly $3 billion in financial savings over the subsequent few years, excluding sports activities,” he mentioned.

Reestablishing the connection between content material choices and their monetary efficiency is “probably the most necessary steps we will take to enhance the economics of our streaming enterprise. There’s rather a lot to perform. However let me be clear: That is my No. 1 precedence.”

As for some long-awaited information in regards to the firm’s dividend: “On account of the affect of the COVID pandemic, we made the choice to droop the dividend within the spring of 2020. Now that the pandemic impacts to our enterprise are largely behind us, we intend to ask the Board to approve the reinstatement of a dividend by the top of the calendar yr.”

On the level Iger talked about the dividend restoration, the inventory rose to a 9% acquire after beforehand organising 3%.

This can be a creating story …