Disney Plans Thousands Of Jobs Cuts In Bid To Achieve 20% Annual Cost Savings: Report

Walt Disney is set to lay off thousands of employees as part of a cost-cutting initiative, according to sources familiar with the company's plans. The entertainment giant has eliminated thousands of positions in recent years, impacting all divisions, including ABC, Pixar, ESPN, the film studio, and the experiences unit. With 231,000 employees worldwide at the end of the last fiscal year, Disney is now targeting further reductions, with some managers asked to achieve 20% annual cost savings.

These savings could be achieved through job eliminations and expense reductions, which could be reinvested into various areas such as film, TV programming, technology, theme parks, and cruise ships. CEO Josh D'Amaro aims to reinvest a portion of the savings into these areas, with the company promising double-digit growth in adjusted earnings per share for the current fiscal year.

The company faces challenges in the current media landscape, with viewers shifting to social media, online videos, and streaming services backed by tech giants. Disney has previously announced restructuring plans for its TV division and cuts in its legal and global affairs unit. Other entertainment companies, such as Netflix, Sony Pictures Entertainment, and Skydance's Paramount and Warner Bros. divisions, have also reduced staff as revenue from traditional television declines and streaming subscriber growth slows.