On November 2, it was reported that the Walt Disney Company is contemplating a significant reduction in its workforce, potentially laying off thousands of employees. According to insights from insiders cited by Bloomberg, the company has directed certain management personnel to aim for a 20% reduction in their annual operating costs. The strategies for achieving these savings include direct job cuts and major reductions in various operational expenses.
This planned layoff comes as Disney’s CEO, Josh D’Amaro, grapples with numerous operational challenges. The entertainment giant is facing a multitude of issues, including the widespread adoption of artificial intelligence in media, stagnation in box office revenue growth, fierce competition in the streaming market, and a deceleration in the influx of international visitors to its theme parks.
Moreover, Disney had previously assured investors that it would achieve a double-digit increase in adjusted earnings per share for the current fiscal year, creating urgent pressure to enhance profitability.
Sources disclosed that certain divisions within Disney, such as theme parks, television channels, and movie production studios, are expected to bear a larger share of the layoffs compared to other business segments. D’Amaro aims to reinvest a portion of the saved funds into high-growth core areas, including film and television production, advanced technological development, and the expansion of theme parks and cruise operations.
However, the report did not specify how many jobs would be affected by these layoffs. As of the end of the fiscal year 2025, Disney has approximately 231,000 employees worldwide.
In recent years, Disney has been streamlining its workforce and cutting unnecessary projects to improve overall profitability. This has involved multiple departments, including ABC, Pixar, ESPN, film studios, and the Experiences and Products division.
On October 1, The Wall Street Journal reported that Disney is planning to restructure its television division and cut personnel in its legal and global affairs department. Furthermore, insiders revealed to Reuters in September that hundreds of employees were laid off from Disney’s human resources and technology sectors.
This latest wave of workforce reduction is the largest thus far in 2023, following previous layoffs earlier this year in April, when about 1,000 positions were cut, as well as additional cuts in July and September affecting hundreds of HR and IT roles.
Earlier in 2025, the company also laid off hundreds of employees, and in 2023, Disney eliminated 7,000 positions as part of a cost-saving initiative launched by former CEO Bob Iger, which aimed to save $5.5 billion.
Currently, the entire Hollywood and media entertainment industry is undergoing a tumultuous adjustment period. This is largely due to the continual decline in traditional cable television revenues, coupled with stagnating growth in streaming subscriptions. Competitors such as Netflix, Sony Pictures Entertainment, and Skydance Media, which has acquired Warner Bros Discovery, have also resorted to layoffs to cut operational costs.
In addition, these media behemoths are facing the looming threat of audience disengagement, as more viewers are shifting their attention to social media platforms, online short videos, and streaming ecosystems heavily promoted by technology giants like Amazon and Apple.
At the Bloomberg Screentime conference held in Los Angeles in October, Dana Walden, Disney’s president, candidly addressed the industry’s transformation, stating that tech giants have set their sights on Disney’s core businesses. She emphasized the need for the company to continuously reassess its organizational structure and workforce size in order to survive, thrive, and grow within this evolving landscape.
In response to inquiries regarding the layoffs, a Disney spokesperson declined to comment on the Bloomberg report and did not respond to requests for comments from Reuters.