Thousands of Disney job cuts may be coming. Investors are asking what comes next.

Walt Disney is reportedly planning to lay off thousands of employees, according to Bloomberg News. Sources close to the matter indicate that some managers may be tasked with achieving 20% annual cost savings as part of the restructuring effort. The company's CEO, Josh D'Amaro, is grappling with a range of challenges, including the increasing use of artificial intelligence, reduced box office earnings, heightened competition from streaming services, and a decline in international attendance at the theme parks operated by Disney.

Not all divisions of Disney are anticipated to share the burden of these cuts equally, and CEO D'Amaro intends to reinvest a portion of the savings into various aspects of the business. These may include film and television production, technological advancements, enhancements to theme parks, and the cruise ship sector. However, the specific number of jobs that could be affected has not been disclosed.

As of the end of fiscal 2025, Disney employed approximately 231,000 individuals. The entertainment giant has been progressively reducing its workforce in recent years as part of broader initiatives to enhance profitability. Earlier in September, Reuters reported that Disney had laid off a few hundred staff across its human resources and technology divisions.

In April, the company had previously eliminated around 1,000 positions, followed by several hundred layoffs in 2025, and 7,000 jobs in 2023 as part of its strategy to cut costs by $5.5 billion under the leadership of former CEO Bob Iger. Other media and entertainment firms, such as Netflix and Skydance, which recently acquired Warner Bros Discovery, have also implemented job cuts to reduce expenses.