Disney Targets Thousands of Jobs in Fresh Cost-Cutting Blitz: Report

Walt Disney Company (NYSE:DIS) stock is trading lower during Tuesday’s premarket session after a report said the media house is planning to eliminate thousands of jobs to accelerate its cost-cutting efforts.

Disney has asked some managers to identify 20% in annual cost savings, which could come from workforce reductions and other operating expenses, according to a Bloomberg report.

The company did not comment on the reported restructuring.

Disney Targets Cost Savings Amid Growing Challenges

The cost-cutting initiative comes as Disney navigates challenges from growing AI adoption, intensifying streaming competition, weaker box-office revenue and slowing international theme park attendance, a Reuters report said.

CEO Josh D’Amaro reportedly intends to reinvest part of the savings into areas, including film and television programming, technology, theme parks and cruise ship businesses.

The company has also been planning a major restructuring of its TV operations, which would result in hundreds of layoffs and the consolidation of divisions, the Wall Street Journal reported recently.

Layoffs Intensify Under Disney’s New Leadership

The potential restructuring would add to several rounds of workforce cuts undertaken by Disney in recent years.

The company eliminated approximately 1,000 positions in April 2026, followed by additional layoffs in July affecting employees across corporate functions, including at Pixar, ESPN, Disney Entertainment Television and Disney’s studios.

In September, Disney also let go of around 300 employees across various divisions, including human resources and technology, said Reuters.

Previously in 2023, under former CEO Bob Iger, Disney announced plans to eliminate approximately 7,000 roles as part of a broader initiative targeting $5.5 billion in cost savings.

Disney employed approximately 231,000 people worldwide at the end of fiscal 2025.

Profitability and Growth Investments in Focus Ahead of Earnings

Disney’s latest restructuring efforts reflect management’s strategy of improving operating efficiency and leveraging capital for investments in content, technology and its experiences businesses.

In its August shareholder letter, management said they were evaluating measures including reducing labor and selling, general and administrative expenses to create incremental capacity for growth investments.

Disney is scheduled to report earnings on Nov. 17.

Analysts expect earnings of $1.68 per share, up from $1.11 per share a year earlier. Revenue is projected to climb 12% to $25.19 billion from $22.46 billion.

The stock carries a Buy rating with an average price forecast of $127.18. Recent analyst moves include:

• Citigroup: Buy (Raises forecast to $140.00) (Oct. 16)
• Needham: Buy (Maintains forecast to $125.00) (Oct. 9)
• Raymond James: Outperform (Lowers forecast to $119.00) (Oct. 5)

Cost-Cutting Sweeps Across Hollywood

Disney’s president and chief creative officer, Dana Walden, said, “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,” while addressing the recent layoffs at the Bloomberg Screentime event in October.

In October, Netflix, Inc. (NASDAQ:NFLX) said it will cut about 1,000 jobs, roughly 6% of its workforce, its largest round of layoffs since 2022.

The reductions would primarily affect product, technology, legal and human resources teams at Netflix, amid intensifying competition.

Similarly, in late October, Skydance Corporation (NYSE:SKYD), following its approximately $110 billion acquisition of Warner Bros. Discovery, reportedly announced a voluntary buyout program for eligible employees, Reuters added.

The combined company is expected to shoulder approximately $80 billion in debt, increasing pressure on its management to expand streaming, ​preserve cash flow from cable networks and ​improve theatrical film performance.

DIS Price Action: Walt Disney shares were down 0.70% at $112.32 during premarket trading on Tuesday, according to Benzinga Pro data.

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