Disney plans thousands of layoffs while targeting 20% cost savings

Walt Disney Co. is set to implement significant workforce reductions, with the goal of achieving 20% annual cost savings across various divisions, according to sources familiar with the matter. The cuts, which could be a result of job eliminations or expense reductions, will impact operations spanning theme parks, television networks, and the film studio, among others.

Disney CEO Josh D'Amaro intends to repurpose a portion of the savings towards investing in film and TV programming, technology, and theme parks and cruise ships. Despite promising double-digit growth in adjusted earnings per share for the current fiscal year, Disney has previously reduced costs and eliminated thousands of positions in recent years, affecting divisions such as ABC, Pixar, ESPN, the film studio, and the experiences unit.

At the end of the previous fiscal year, Disney employed a total of 231,000 people worldwide. Reports from The Wall Street Journal, published on October 1, suggested that Disney was planning a restructuring of its TV division, as well as cuts within its legal and global affairs unit. Other entertainment giants, including Netflix, Sony Pictures Entertainment, and Skydance's Paramount and Warner Bros. divisions, have also undergone job cuts due to declining revenue from traditional television, slowing streaming subscriber growth, and an increasing preference for social media, online videos, and streaming services backed by tech behemoths like Amazon and Apple.

During a Bloomberg Screentime conference in Los Angeles earlier this year, Disney President Dana Walden emphasized the necessity of constantly evaluating the company's structure and size to ensure survival, growth, and thriving in the face of advancing technology.