Disney plans thousands of layoffs, managers asked to hit 20% cost savings target

Disney plans to eliminate thousands of jobs to cut operating costs by 20 percent. The company is making this move to survive heavy competition from streaming apps, the rise of AI, and weak ticket sales.

In Short

• Disney plans thousands of layoffs to reduce its operating costs by 20 per cent.
• Savings will be reinvested into new technology, films, and theme parks.
• The cuts aim to tackle pressure from AI, streaming rivals, and low box office sales.

The Walt Disney Company is gearing up for another major round of layoffs. A new report by Bloomberg News reveals that the entertainment giant is looking at cutting thousands of jobs. To make this happen, the company has asked certain managers to figure out ways to reduce their annual operating costs by a massive 20 per cent.

The restructuring comes at a difficult time for the entertainment brand. CEO Josh D'Amaro is currently navigating several major hurdles. These challenges include the rapid rise and use of Artificial Intelligence (AI) and tough competition from rival streaming services. On top of that, Disney is dealing with weaker revenue at the box office and a noticeable slowdown in international visitors coming to its famous theme parks.

Where the savings will be spent

The cost-cutting measures will not affect every department equally, as some parts of the Disney business will bear a much heavier burden of the cuts than others. However, the money saved will not just sit in the bank.

D'Amaro plans to take a portion of those savings and reinvest them back into core areas of the company. This includes fresh funding for new technology, film and television programming, as well as the theme park and cruise ship businesses.

Previous job cuts at the company

While it is still unclear exactly how many people will lose their jobs in this upcoming round, Disney is a massive global employer. At the end of the 2025 fiscal year, the company had a workforce of roughly 231,000 people. However, the company has been consistently shrinking its team over the last few years as part of a broader effort to improve profitability.

In September, reports indicated that Disney let go of a few hundred employees across its human resources and technology divisions. Before that, the company slashed about 1,000 roles in April and several hundred more throughout the rest of 2025. The most significant reduction happened in 2023 when former CEO Bob Iger eliminated 7,000 jobs to save the company $5.5 billion in costs.

An industry-wide trend

Disney is not the only entertainment company tightening its belt right now to reduce costs. Other major media players are making similar moves to survive in a shifting digital landscape. Streaming giant Netflix and production company Skydance, which recently acquired its bigger rival Warner Bros Discovery earlier this year, have also eliminated jobs to lower their overall expenses.

As Disney will move forward with this massive restructuring, the coming weeks will be crucial. While the company pushes to save money and adapt to a fast-changing digital and AI-driven world, thousands of employees are left waiting for clarity on their job security.

Ultimately, this move highlights how even the biggest entertainment and media brands must constantly evolve and make tough choices to stay ahead in today’s highly competitive market.

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