Disney to undergo further layoffs with divisions targeting 20% cost savings

The Walt Disney Company is preparing for a new round of layoffs that could impact thousands of employees, according to reports from Bloomberg cited by multiple outlets.

Targeted Cost Reductions

Sources indicate that managers within various divisions have been given targets to achieve as much as 20% in annual cost savings. These reductions are expected to be driven by a combination of job eliminations and broader expense reductions. The cuts are expected to disproportionately impact specific operations, including television networks, motion picture studios, and theme parks.

Disney declined to comment on the reports.

Recent and Ongoing Restructuring

This move follows a period of continuous restructuring under CEO Josh D’Amaro, who took over from Bob Iger on March 18. Recent workforce reductions have included:

• April: 1,000 roles eliminated.
• July: Several hundred roles eliminated, primarily affecting Pixar and National Geographic.
• Late September: A couple of hundred employees laid off, largely in tech and HR.
• Last week: 100-200 employees in the Experiences division were laid off, the majority at the Imagineering campus in Glendale.

In August, the company completed a Voluntary Early Retirement Offer (VERO) for longtime executives, a process that sources indicate saw more eligible managers opt for the package than anticipated.

Strategic Reinvestment

CEO Josh D’Amaro has stated that the company intends to use savings to invest in growth areas. "When our teams work smarter, we can serve more people across our parks and digital platforms and do it more cost-effectively," D’Amaro said during a recent earnings call. He noted that savings would be used to reinvest in "new content and next generation guest experiences, as well as technology infrastructure."

Regarding the continuous restructuring, Dana Walden, President and Chief Creative Officer of The Walt Disney Company, said at the Bloomberg Screentime conference, "Technology set their sights on our business, and we must survive and thrive and grow. That’s what we’re going to do."

Why it matters

Disney's workforce stood at just over 230,000 employees at the end of the most recent fiscal year. The company's cost-cutting measures occur amid broader industry headwinds, as other media giants such as Netflix Inc., Sony Pictures Entertainment, Paramount, and Warner Bros. divisions have also implemented workforce reductions due to shifts in television and streaming trends.

---

Sources

• deadline.com: Disney To Undergo More Layoffs With Divisions Eyeing Up To 20% Savings
• laughingplace.com: More Layoffs and Cost Cutting Coming to Various Disney Divisions
• livemint.com: Disney layoffs: Thousands of job cuts expected as company targets 20% cost savings; these operations to be hit hardest | Company Business News

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.