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Disney chief executive Bob Iger says he is cutting 7,000 jobs in a major shake-up of the entertainment giant.

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The layoffs are part of a plan to save $5.5bn and make its Disney+ streaming service profitable, which reported its first fall in subscribers since it launched the service in 2019.

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Mr Iger said he did "not make this decision lightly".

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He announced the changes alongside ts latest sales figures, his first since he returned to Disney in November.

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Commenting on the job cuts, Mr Iger said: "I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I'm mindful of the personal impact of these changes."

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He said the changes would "better position us to weather future disruption and global economic challenges".

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The job cuts amount to around 3.6% of Disney's workforce around the world.

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Meanwhile, Disney reported an 8% rise in sales to $23.5bn (£19.4bn) between October and December last year. Profit also rose, up by 11% to $1.3bn.

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However, Disney+ reported a $1.5bn loss and its subscribers fell by around 2.4m to 161.8m.

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The plan will see the company restructure into three segments - entertainment which will include film, TV and streaming; sports-focused ESPN and Disney parks, experiences and products.

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"This reorganisation will result in a more cost-effective, coordinated approach to our operations," Mr Iger told analysts on a conference call.

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The company's streaming service remained its top priority, he added.

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Disney share price rose by more than 5% in extended trade after the announcement.