Bloomberg reported that Disney could eliminate thousands of jobs. Some managers were reportedly asked to seek annual cost savings of 20%. Bloomberg cited people familiar with the matter as saying savings could involve expense reductions, with a greater impact on some divisions than others. Disney employed about 231,000 people when fiscal 2025 ended.
CEO Josh D'Amaro plans to direct some savings toward content, parks, cruises and technology. The amount reinvested may influence how much of the savings increases earnings for Disney shareholders. The plan follows a year in which Disney made smaller, targeted workforce reductions. Disney removed about 1,000 jobs in April. Disney cut several hundred additional positions in July. Disney dismissed a few hundred human resources and technology employees in September. The Wall Street Journal separately reported on October 1 that Disney intended to reorganize the company's television division.
Reuters identified AI, weaker box-office performance, streaming competition and slower attendance at international parks as pressures on Disney. AI has commonly driven workforce reductions across industries in 2026. Those pressures challenge the profit goal Disney has reiterated to investors throughout the year. Disney's August shareholder letter maintained a target of double-digit growth in adjusted earnings per share for fiscal 2027. The growth target excludes the additional 53rd week in fiscal 2026. Larger savings would help Disney achieve the goal if revenue from parks or the box office weakens.
Disney shares have recovered from summer lows over the past three months. TradingView data show that Disney shares traded about 18% below the stock's starting level for 2026 in late July. Disney shares rose nearly 5% in premarket trading in August after quarterly results exceeded estimates. The subsequent rally brought Disney shares within about 2% of the stock's starting level for the year by late August. Disney shares lost ground during September. Disney shares were roughly 10% below the stock's starting level for 2026 by early October. Disney shares then rose during most of October. DIS closed November 2 at $113.11, gaining 1.96% that day. The closing price was about 0.58% below the stock's starting level for the year.
The savings plan comes two weeks before Disney faces scrutiny over the double-digit profit target. Disney is expected to publish fiscal fourth-quarter earnings before trading opens on November 17. Barchart says analysts forecast earnings of $1.68 per share, up 51.4% from $1.11 a year earlier. A savings amount in dollars and revised fiscal 2027 guidance would help investors assess the plan.
Netflix, Sony Pictures, and Skydance's Paramount and Warner Bros. units have also cut staff. Those workforce reductions reflect declining traditional television revenue and slower growth in streaming subscribers.
Disney Plans Major Layoffs, Some Managers Told to Cut 20%
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Summary
Disney is reportedly planning major layoffs, with some managers told to cut 20% of costs. The move follows pressure from AI-driven automation, weak box office results, streaming competition, and lower international park attendance. The company has already cut 1,000 jobs in April and several hundred more in July and September. As AI reshapes industries, crypto news suggests similar shifts are emerging in traditional sectors.
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