Disney is laying off 7,000 workers and restructuring to reduce costs in a major shakeup following the return of CEO Bob Iger

The company also announced a restructuring of its businesses, with a goal of reducing costs and improving profitability. Management will hold a call with investors later Wednesday.

Earnings came to 99 cents a share in the period ended Dec. 31, Disney said, above the 74-cent average of analysts’ estimates. Revenue grew 7.8% to $23.5 billion, slightly above projections. 

The results are sure to be scrutinized by Trian Partners co-founder Nelson Peltz, who is waging a proxy fight for a seat on the board. Subscribers to the Disney+ streaming business declined 1% in the quarter to 161.8 million amid cancellations of the Hotstar service in India after Disney lost streaming rights to cricket there.

Shares of Disney rose as much as 3.8% to $116 in extended trading after the results were announced. They have declined 22% in the past year.

Losses in the streaming business more than doubled to $1.05 billion from a year earlier but came in better than management had forecast three months ago.

“The work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders,” Iger said in the statement Wednesday. 

Outsize losses in streaming contributed to the ouster of Chief Executive Officer Bob Chapek late last year and the return of CEO Iger, who led the company from 2005 to 2020. The Burbank, California-based entertainment giant is seeking to achieve profitability in its streaming division next year and fend off Peltz, who holds a Disney stake worth about $1 billion. 

After years of focusing on subscriber growth in streaming, Wall Street’s attention in recent months has turned to when the media industry’s staggering investments in online film and TV shows will begin earning a return. 

To help counter the losses in streaming, Iger is considering licensing more of Disney’s films and TV series to rivals after years of keeping the vast majority of the titles exclusive to its Disney+ and Hulu streaming platforms. 

Disney’s parks continued to shine, with revenue in that division increasing 21% to $8.74 billion and earnings climbing 25% to $3.05 billion. That included sales and earnings from consumer products that were little changed.

Revenue from Disney’s traditional broadcast and cable TV business, such as ESPN, fell 5% to $7.29 billion, while operating income slumped 16% to $1.26 billion, hurt by weakness outside the US.