Disney Eyes Thousands of Layoffs in Push for 20% Cost Cuts

The Walt Disney Company is looking at eliminating thousands of positions and has asked some managers to target 20% in annual cost savings, according to multiple media reports.The possible job cuts come as CEO Josh D’Amaro is reportedly facing challenges from growing AI use, weaker box office revenue, mounting competition from streaming challengers and a slowdown in theme park attendance abroad, according to Bloomberg, which first reported the news. It’s said that some operations within Disney are set to face larger cuts than others. Though, per the reports, D’Amaro plans to reinvest the savings from the cuts into the company’s film and TV programming, technology, theme parks and cruise ship operations. It’s currently unclear how many jobs could be impacted, but Disney employed about 231,000 people at the end of 2025’s fiscal year. Still, the company has made a number of substantial cuts this year. In fact, just last week, the Walt Disney Company’s theme parks division laid off between 100 and 200 people. As we reported at the time, the staff cuts followed a regular evaluation of the division’s investments and pending projects. The layoffs impacted those across all parts of Imagineering, which is the creative and technical arm that brings to life theme parks, attractions, resorts, cruise ships and live entertainment. The decision came after Disney offered voluntary early retirement packages in August to executives as part of a cost-reduction effort. “Over the past few years, we’ve made real changes to how we operate, and we’re still in that process,” Chief People Officer Sonia Coleman wrote in a staff memo at the time. “As you heard on our most recent earnings call, we’re focused on meaningfully reducing costs as part of our ongoing transformation, so we can continue to invest in the areas that will drive our future growth: content, technology, and experiences. We’ve been evaluating a range of options, and the next phase includes introducing a Voluntary Early Retirement Offer (VERO) for a defined group of eligible executives.” Prior to this memo, Disney had eliminated 1,000 roles in April, as well as made staff cuts in July and September. The September staff reductions impacted an additional couple hundred employees, mainly in the tech and HR areas. Disney did not immediately respond to TheWrap’s request for comment.