Walt Disney is moving towards thousands of job cuts, with the entertainment giant asking some managers to target 20% in annual cost savings, according to people familiar with the matter.
The cuts are expected to land unevenly. According to sources cited by Deadline, the new round of layoffs will span multiple divisions, including TV networks and the motion picture studio. The savings could come from job eliminations as well as from expense reductions, according to Bloomberg's sources, who asked not to be identified because the discussions are private.
CEO Josh D'Amaro aims to reinvest a portion of the savings into film and TV programming, technology, and the theme parks and cruise ship businesses.
The restructuring effort comes as D'Amaro navigates challenges including the growing use of AI, weaker box office revenue, intensifying competition from streaming rivals, and a slowdown in international attendance at the company's theme parks.
Disney declined to comment. The exact timing of the cuts remains unclear.
This would be the fourth and largest round of cuts in 2026 under D'Amaro. There have been ongoing layoffs at Disney throughout the year following D'Amaro taking over as CEO from Bob Iger on 18 March. The decision follows Disney having offered voluntary early retirement packages to executives in August as part of a cost-reduction effort, and the company having already eliminated 1,000 roles in April, with further staff cuts made in July and September.
Disney has cut billions of dollars worth of costs and eliminated thousands of positions in recent years, with reductions impacting every division including ABC, Pixar, ESPN, the film studio and the experiences unit. The company had 231,000 people worldwide at the end of the last fiscal year.
Full fiscal 2026 earnings are due on 17 November, and that call is the next scheduled opportunity for D'Amaro to address the cuts publicly.
Source: Bloomberg
