Disney is reportedly planning a major round of job cuts, with some managers instructed to reduce annualized expenses by 20%.
Disney is preparing for a significant round of layoffs that could affect thousands of employees, according to reports from Bloomberg News citing anonymous sources. Some managers have reportedly been told to cut annualized expenses by 20%.
According to Bloomberg News, some Disney operations "will be affected disproportionately," though specific departments have not been identified. The reported cuts would constitute the largest round of job reductions for the company in 2026.
In an August 5 letter to shareholders, CEO Josh D’Amaro and CFO Hugh Johnston stated, "We remain highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers, including reductions in labor and SG&A."
This anticipated round follows several previous rounds of job cuts conducted by the company this year:
Additionally, the Wall Street Journal reported last month that Disney has been planning a restructuring of its TV operations that would eliminate hundreds of jobs and consolidate divisions.
According to the Bloomberg report, D’Amaro "aims to reinvest a portion of the savings into film and TV programming, technology and the theme parks and cruise ship businesses."
At a Bloomberg Screentime event, Disney President and Chief Creative Officer Dana Walden addressed the necessity of organizational evaluation. "I think, like all of our similarly situated competitors, and certainly all of our competitors in the tech industry, there is a need to constantly evaluate how you’re structured," Walden said.
Walden also commented on a recent voluntary buyout program offered to U.S.-based employees at the director through EVP levels. She stated the program "was extremely generous and gave a number of our long-tenured executives agency and the opportunity to make their own decisions around whether the timing was right to leave or to stay, knowing that this evolution will never stop, technology set their sights on our business, and we must survive and thrive and grow, and that’s what we're going to do."
Disney is facing industry-wide shifts as traditional television revenue declines and competition increases from streaming services and social media. The company reported having 231,000 employees worldwide at the end of its last fiscal year and has promised double-digit growth in adjusted earnings per share for the current fiscal year.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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The Walt Disney Company is reportedly preparing for more layoffs across multiple divisions, including TV networks and movie studios, as managers are asked to target significant annual cost savings.
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