Disney’s plan to find billions in savings is getting even more ambitious as it looks to course correct after activist investor Nelson Peltz called for big changes at the entertainment giant earlier this year.
The company, which had previously announced an effort to reduce costs by $5.5 billion this year, now expects to save an additional $2 billion, CEO Bob Iger said on an earnings call Wednesday. Investors welcomed the cuts, sending Disney’s stock up 7% on Thursday. Keeping costs in line will also likely play a pivotal role in girding the company for more skirmishes with Peltz, who has previously criticized Disney for its spending habits. He is said to be considering a renewed push for at least one Disney board seat and was waiting for the company’s latest earnings to decide, according to CNBC.
