Disney (DIS) Plans Several Thousand Layoffs, Asks Managers to Cut Costs by 20%
Published on · Source: cnbc.com
AI Summary
Summarized by AI from the source belowDisney (DIS) is planning to cut several thousand jobs as part of a cost reduction effort, CNBC reported based on anonymous sources. Some managers have been asked to reduce their budgets by up to 20%. This follows earlier layoffs announced in April and September, which cut about 1,000 and 300 employees respectively, mainly in marketing, human resources, and technology departments.
CEO Josh D'Amaro and CFO Hugh Johnston signaled further potential cuts in an August letter to shareholders, emphasizing ongoing cost-reduction efforts to free up resources for growth investments. The company also introduced an early retirement program in August to reduce its workforce, which numbered about 231,000 employees at the end of fiscal 2025. Disney's Chief People Officer Sonia Coleman indicated that involuntary staff reductions had already started in some areas and will continue into the next year.
Other entertainment companies like Netflix and Skydance are also reducing staff to manage costs and improve efficiency. Disney will report its fiscal fourth-quarter earnings on November 17. These layoffs and cost cuts could affect Disney's operating expenses and profitability going forward.
Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.
Our take
Opinion from the Newsstocks AI desk, not investment adviceWe think Disney's continued layoffs and cost-cutting reflect ongoing pressure to manage expenses amid uncertain growth. The scale of job cuts and manager budget reductions suggest significant restructuring. However, these measures also free capacity to invest in growth, as management stated. The impact on financial results will be clearer after the upcoming earnings report.
Key numbers
- Cost reduction target
- up to 20%
- April layoffs
- as many as 1,000 employees
- September layoffs
- about 300 employees
- Workforce at fiscal 2025 end
- about 231,000 employees
What could hurt
- Layoffs and cost cuts could increase short-term expenses and impact employee morale.
- Further reductions may signal challenges in revenue growth or profitability.
What to watch next
Disney will report its fiscal fourth-quarter earnings on Nov. 17.
The background
Layoffs and cost cuts reduce company expenses by lowering staff and budgets. This frees funds for other investments or improves profits.
Questions readers ask
How many jobs is Disney planning to cut?
Disney is planning to cut several thousand jobs as part of its latest cost reduction efforts.
What cost reduction target has Disney set for its managers?
Some Disney managers have been asked to reduce costs by up to 20%.
When will Disney report its next earnings?
Disney will report its fiscal fourth-quarter earnings on November 17.
About The Walt Disney Company (DIS)
The Walt Disney Company is a media and entertainment leader spanning studios, theme parks, television networks, and Disney+ streaming.
The Communication Services sector covers media, entertainment, telecom and interactive companies that connect and inform people.
Earlier DIS news
- Disney Plans Thousands of Layoffs to Cut 20% Costs, Bloomberg Reports
- Disney Plans Thousands of Job Cuts Amid Restructuring Effort
- Disney (DIS) EVP Brent Woodford Sells $318,958 in Stock
- Disney Licenses ‘Ice Age’ and ‘Percy Jackson’ to Netflix
- Disney (DIS) Restructuring Targets Hundreds of Jobs Impacting Operations
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