The Walt Disney Company is reportedly considering a major job cut that could put thousands of jobs at risk as the entertainment giant ramps up its efforts to cut costs and boost profitability. Bloomberg reported that Disney executives have asked managers to find ways to save 20 per cent in annual costs next year. Job eliminations as well as cuts to operating expenses are among the restructuring options being considered, employees across Disney’s global entertainment business say.
The move comes as Disney faces pressure on all fronts: traditional TV networks, movie studios, streaming services and theme parks. The company is said to be reviewing its organisational structure to see where expenses can be cut. It hasn’t been announced how many jobs might be affected, but the potential size of the restructuring has been noted around the world in the media and entertainment industry.
Disney Targets 20% Annual Cost Savings Amid Restructuring
Bloomberg reported that Disney has told some managers to aim for 20% annual cost savings. Those savings could come from workforce reductions, operational changes and other expense-cutting measures. The company is reportedly looking at different business divisions to see where the biggest savings can be made.
But cuts aren’t expected to hit every division equally. Television networks, film studios and theme park businesses could be hurt more than others. Corporate functions and administrative operations are also expected to be reviewed as part of the overall restructuring.
Disney CEO Josh D’Amaro is said to be redirecting some of the savings towards areas important for future growth (film and television programming, technology, theme parks, cruise ship operations). That means the company is cutting expenses but still wants to invest in businesses that could make it more competitive long term.
Disney has not publicly confirmed how many employees could lose their jobs under the reported plan. The company also refused to comment on specifics of the restructuring, reports said.
AI Adoption and Streaming Competition Add Pressure
The reported Disney layoffs come as the global entertainment industry is changing rapidly. AI is being used across media production, technology, marketing and administration; companies are looking at how emerging technologies can increase productivity and lower costs.
At the same time, Disney is being squeezed by streaming platforms and digital entertainment services. Consumer viewing habits have driven pressure on traditional television networks while streaming companies compete for subscribers, advertising revenue and original content.
The entertainment giant is also facing weaker box-office revenue in some areas and a slowdown in international attendance at its theme parks. Those issues have made operational efficiency and profitability more important across all of its business units.
Online video platforms, social media and streaming services backed by major technology companies have also increased in popularity, which further reshaped the competitive landscape. Disney is therefore trying to change its organisational structure to suit the changing demands of the entertainment market.
Disney Has Already Conducted Multiple Layoff Rounds
The latest reported restructuring comes after several rounds of job cuts at Disney in recent years. In 2023 alone, the company cut about 7,000 jobs as part of a cost-saving initiative that also reduced expenses by $5.5 billion.
Disney also reduced its workforce in 2025 and 2026. Earlier in 2026, the company reportedly laid off about 1,000 jobs while other cuts affected several hundred employees across HR, tech and other departments.
These repeated workforce changes are part of the company’s ongoing effort to streamline operations and improve financial performance. Disney had about 231,000 employees worldwide at the end of fiscal year 2025, a large number given its global operations.
The entertainment industry has seen similar moves at other major companies as well. Netflix, Sony Pictures Entertainment, Paramount and Warner Bros. have all cut costs as traditional television revenue dries up and streaming competition ramps up.
What the Disney Layoffs Mean for Employees
Thousands of job cuts have worried Disney employees and industry watchers. If the reported restructuring goes ahead, workers in various divisions would be uncertain about their jobs and future employment status.
The company will try to find ways to make operational efficiency better while still investing in major entertainment franchises, technology and consumer experiences but how employees are affected depends on how far-reaching the proposed measures are and how they are implemented.
But for now, don’t read into that 20% cost savings target as a 20% reduction in Disney’s workforce; it’s an annual savings target (among many other expense cuts).
The latest news highlights the financial and operational challenges facing major entertainment companies as they respond to changing consumer tastes, technology innovation and shifting revenue models. Disney’s restructuring could become an important development for global media if the job cuts proposed involve thousands of employees in its major business units.
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