Disney plans thousands of layoffs as managers asked to cut costs by 20%

Disney is contemplating laying off thousands of employees as the media conglomerate aims to slash expenses by 20 percent, according to Bloomberg. Sources familiar with the situation revealed the potential cuts, which may include reductions in workforce and operating costs. The proposed changes are anticipated to impact various divisions of Disney, with some experiencing more significant reductions than others.

The entertainment giant, which operates theme parks, television networks, film studios, and cruise ships, intends to reinvest a portion of the savings into film and television programming, technology, theme parks, and cruise operations. These cost-cutting measures come as Disney strives to achieve double-digit growth in adjusted earnings per share during the current fiscal year.

The company, which employed around 231,000 individuals globally at the end of its last financial year, has already downsized and trimmed costs in recent years, including a 7,000 job reduction in 2023. Disney's cost-cutting plans align with broader industry trends as traditional media companies confront declining television revenue, increased competition from streaming platforms, and evolving viewer preferences.

Rivals such as Netflix, Sony Pictures Entertainment, and Skydance's Paramount and Warner Bros. have also downsized their workforces to enhance profitability. As technology continues to reshape the entertainment landscape, Disney's new CEO, Josh D Amaro, expressed the need to reassess organizational structures and adapt to changing dynamics to maintain competitiveness and foster growth.