In a move that has sent shockwaves through the entertainment industry, The Walt Disney Company announced on Tuesday that it will be cutting 7,000 jobs and slashing $5.5 billion in costs as part of a vast restructuring plan. The news comes as the company’s streaming numbers have fallen for the first time in its history.

The job losses will be spread across Disney’s international operations, including its parks, experiences, and products division, as well as its media and entertainment division. The cuts will also affect Disney’s direct-to-consumer and international segment, which includes Disney+, Hulu, and ESPN+.

Disney CEO Bob Iger said in a statement that the company is “making the difficult decision to reduce our workforce as we evolve to meet the changing demands of the business.” He added that the job cuts are “essential to our future growth.”

The company also announced that it will be rewarding shareholders with a dividend of $0.88 per share and a share repurchase program of up to $7 billion.

The restructuring plan is expected to help Disney weather the economic downturn caused by the COVID-19 pandemic. The company is hoping that its streaming services will help it rebound from the losses it has incurred this year.

The news has been met with mixed reactions from analysts and industry experts. Some have praised the move, saying that it will help the company remain competitive in the streaming market. Others have expressed concern that the job losses could have a negative impact on the entertainment industry.

It remains to be seen how the restructuring plan will affect Disney’s future. In the meantime, the company is hoping that its streaming services will help it recover and remain competitive in the long run.