Disney weighs thousands of job cuts as managers face 20% cost-saving targets

Walt Disney is considering cutting thousands of jobs as part of a fresh cost-cutting plan. The company has asked some managers to look for ways to reduce annual costs by 20%, according to a report by Bloomberg News.

The move comes as Chief Executive Officer Josh D'Amaro faces several challenges, including growing use of artificial intelligence (AI), weaker box office performance, rising competition from streaming platforms and fewer international visitors at the company's theme parks.

Some parts of Disney's business could face more job cuts than others. D'Amaro plans to use part of the money saved to invest in films, television shows, technology, theme parks and cruise ship operations.

Disney did not immediately respond to a Reuters request for comment outside regular business hours. The report did not mention how many jobs could be affected.

The latest cost-cutting plan follows several rounds of layoffs as Disney looks to reduce expenses and improve profits.

In 2023, the company cut around 7,000 jobs as part of a plan to save $5.5 billion. The cuts affected several businesses, including ABC, Pixar, ESPN, its film studio and Experiences division.

Disney continued to reduce its workforce in 2026, cutting around 1,000 jobs in April. This was followed by several hundred job cuts in July, mainly at Pixar and National Geographic.

In September, the company also laid off a few hundred employees across its human resources and technology teams, Reuters reported.

Disney has also offered voluntary early retirement to employees at director level and above who are at least 50 years old and have worked at the company for 10 years or more.

Disney's Experiences division, which includes theme parks, resorts and cruise lines, has also been affected by recent layoffs.

According to Deadline, Disney cut between 100 and 200 jobs in the division on 28 October. Most of the affected employees were based at its Imagineering campus in Glendale.

The job cuts come even as the division reported higher profits. Experiences recorded a 20% rise in profit to more than $3 billion, while revenue reached nearly $10 billion.

The division also saw a 4% increase in global visitors. Attendance at domestic theme parks grew 3%, while the average amount spent on tickets by each visitor increased 5%.

Disney had around 231,000 employees at the end of its 2025 financial year. Of these, 172,000 were based in the US, while 59,000 worked across other countries.

Part-time employees made up 16% of its workforce, while seasonal staff accounted for 8%.

The latest job cuts also come as other media and entertainment companies look to reduce costs.

Streaming company Netflix recently cut around 6% of its workforce. Skydance, which acquired Warner Bros Discovery earlier this year, has also offered buyouts to some employees as part of its cost-cutting efforts.

Disney's latest restructuring plan reflects its continued focus on reducing expenses while investing in films, technology, theme parks and other businesses.