Disney Layoffs: Thousands of Jobs at Risk in 20% Cost-Cut Plan

The Walt Disney Company is preparing for another major round of Job Cuts as it looks to reduce operating expenses and improve profitability. According to a Bloomberg News report, the entertainment giant has asked certain managers to identify ways to cut their annual operating costs by 20%, a move that could result in thousands of job losses.

The proposed restructuring comes as Disney faces growing competition from streaming platforms, rapid advances in artificial intelligence (AI), weaker box office revenue and a slowdown in international visitors to its theme parks. CEO Josh D’Amaro is navigating these challenges as the company reassesses its spending and business priorities.

Disney Managers Asked to Identify 20% Cost Savings

As part of the cost-reduction exercise, selected Disney managers have been asked to find opportunities to reduce annual operating expenses by 20%. The planned cuts are expected to affect different departments unevenly, with some business areas facing greater pressure than others.

Although the exact number of employees who could lose their jobs has not been confirmed, the reported plan to eliminate thousands of positions would mark another significant workforce restructuring for the company.

Disney is pursuing the savings amid changes across the Entertainment Industry. Streaming services have intensified competition for viewers, while AI is reshaping production processes and the wider media business. At the same time, weaker theatrical performance and slower growth in international theme park visitors have added pressure to the company’s operations.

Where Disney Plans to Reinvest the Savings

The proposed cost reductions are not intended simply to increase the company’s cash reserves. D’Amaro plans to reinvest part of the savings into areas considered central to Disney’s future growth.

These priorities include new technology, film and television programming, theme parks and cruise ship operations. The approach would allow Disney to reduce expenses in some parts of its business while continuing to fund projects and services in areas where it sees opportunities for growth.

The company has not disclosed how the savings would be distributed across individual divisions or which departments could face the largest reductions.

Disney’s Previous Layoffs and Workforce Reductions

Disney remains a major global employer, with approximately 231,000 employees at the end of its 2025 fiscal year. However, the company has been reducing its workforce over the past several years as part of broader efforts to improve profitability and control operating costs.

In September, reports indicated that Disney had eliminated a few hundred positions across its human resources and technology divisions. Earlier, the company cut around 1,000 roles in April and several hundred more during the rest of 2025.

The most significant recent restructuring took place in 2023, when former CEO Bob Iger announced plans to eliminate 7,000 jobs. The cuts were part of a wider cost-saving programme aimed at reducing expenses by $5.5 billion.

The latest reported plan would add to those workforce reductions, although Disney has not confirmed the final number of positions that could be affected.

Media and Entertainment Industry Faces Wider Cost Cuts

Disney’s reported restructuring reflects a broader trend across the global entertainment and media industry, where companies are reassessing expenses as audiences shift towards digital platforms and production economics change.

Streaming giant Netflix and Skydance have also eliminated jobs as part of efforts to reduce costs. Skydance’s position in the industry has changed following its acquisition of Warner Bros. Discovery, adding to the wider restructuring taking place across major media businesses.

Companies are increasingly balancing investment in technology and content against the need to maintain profitability. Competition for subscribers, changing viewing habits and the growing use of AI are contributing to pressure on traditional entertainment business models.

Disney Employees Await Clarity on Job Security

Disney’s reported cost-cutting exercise leaves employees waiting for more information about which teams and roles could be affected. The company has not announced a final layoff figure or provided a detailed timetable for the proposed reductions.

For D’Amaro, the challenge will be to control expenses while continuing to invest in the company’s film, television, technology and theme park businesses. The planned 20% savings target highlights the scale of the restructuring under consideration as Disney responds to a rapidly changing entertainment industry.