Disney is weighing layoffs that could affect thousands of employees, while some managers have been told to aim for 20% annual cost savings, Bloomberg reported, citing people familiar with the matter. The company has not released a headcount, timeline, or list of affected divisions. Disney declined to comment.
Scope of cuts has not been disclosed
Bloomberg said the impact would vary across divisions, though the company has not identified which units would be hit. If the plan moves forward, it would be the biggest layoff round since Josh D Amaro replaced Bob Iger as chief executive on March 18.
Disney has already cut jobs several times this year
This would not be the first workforce reduction in 2026.
On April 14, Disney cut about 1,000 jobs, largely tied to a consolidation of marketing functions across television, film studios, ESPN, products, and technology. In a memo at the time, D Amaro said the company would keep looking at how to build a team that is 「more agile and better at using technology」.
In July, Disney cut several hundred more jobs across corporate functions, ESPN, television, and film. Pixar and National Geographic were hit hardest. California’s WARN list, a public filing system that requires advance notice for large layoffs, showed that Pixar filed on July 21 for 108 permanent layoffs, effective Sept. 26.
Around August, Disney offered early retirement packages to senior executives. By late September, it had cut about 300 more roles, mostly in human resources and technology. On Oct. 28, the Los Angeles Times reported another 100 to 200 layoffs in the experiences division.
Cost cuts are meant to free up capital for other priorities
Bloomberg said Disney does not appear to be short on cash. Instead, D Amaro wants to redirect part of the savings into film and television content, technology, theme parks, and cruise operations.
That direction was already laid out in Disney’s fiscal third-quarter earnings report on Aug. 5. The company said it was aggressively reducing costs across the business to create room for growth investment. Measures under review included workforce reductions and lower selling, general, and administrative expenses, or SG&A. Disney said the work was about halfway complete and that it would provide updates later.
Chief Financial Officer Hugh Johnston said on the earnings call that Disney was studying 「meaningful cost reductions, including labor and SG&A」.
Revenue, profit, and cash position remained solid
Disney reported quarterly revenue of $25.2 billion, up 7% year over year. Adjusted earnings per share came in at $2.06, up 28%. Operating income in the experiences segment, which includes theme parks and cruise operations, reached $3.017 billion, up 20%, with about 4 percentage points of that growth coming from roughly $100 million in tariff refunds.
Johnston also said the company had enough capacity to invest in growth and return capital to shareholders at the same time. Capital expenditures this year are about $9 billion, while content spending is about $24 billion. Disney also raised its share repurchase plan from about $7 billion to at least $9 billion.
According to Johnston, the increase in buybacks was funded mainly by cash previously reserved for an OpenAI deal and proceeds from the sale of Disney’s stake in A+E. That OpenAI partnership fell through in March.
