The Walt Disney Co. said Wednesday it will cut about 7,000 jobs as part of a “significant transformation” announced by CEO Bob Iger.

The job cuts amount to about 3% of the entertainment’s global workforce and were announced Wednesday after Disney reported quarterly results that topped Wall Street’s forecasts.

Iger returned as CEO in November following a challenging two-year tenure by his handpicked successor, Bob Chapek. The company says the job reductions are part of a targeted $5.5 billion cost savings across the company. As of Oct. 1, Disney employed 220,000 people, of which about 166,000 worked in the U.S. and 54,000 internationally.

In its latest results, solid growth at Disney’s theme parks helped offset tepid performance in its video streaming and movie business.

Disney said Wednesday that it earned $1.28 billion, or 70 cents per share, in the three months through Dec. 31. That compares with net income of $1.1 billion, or 60 cents per share, a year earlier.

Excluding one-time items, Disney earned 99 cents per share. Analysts, on average, were expecting adjusted earnings of 78 cents per share, according to FactSet.

Revenue grew 8% to $23.51 billion from $21.82 billion a year earlier. Analysts were expecting revenue of $23.44 billion.

The latest results marked the first quarterly snapshot since Bob Iger’s return as CEO in November following a challenging two-year tenure by his handpicked successor, Bob Chapek.

In a statement, Iger said the company is embarking on a “significant transformation” that management believes will lead to improved profitability at the company’s streaming business.

The company said Disney+ ended the quarter with 161.8 million subscribers, down 1% from since Oct. 1. Hulu and ESPN+ each posted a 2% increase in paid subscribers during the quarter.

Shares in Disney, which is based in Burbank, California, rose 3% in after-hours trading.