Entertainment giant Disney is considering laying off thousands of employees and has asked some of its managers to identify savings of 20% in annual expenses, Bloomberg reported. According to the report, the savings could come from both eliminating jobs and reducing other costs.
The cost-cutting initiative comes as CEO Josh D'Amaro faces a series of challenges, including the growing use of artificial intelligence, weaker box office revenue, intensifying competition from rival streaming services and a slowdown in international visitors to the company's theme parks.
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According to the report, some of Disney's businesses, including its theme parks, television network and film studio, will be affected more heavily than others. D'Amaro plans to reinvest some of the savings in film and television content, technology, and the company's theme park and cruise operations. Disney has pledged double-digit growth in adjusted earnings per share in the current fiscal year.
The report did not specify how many jobs could be affected. At the end of fiscal 2025, Disney employed approximately 231,000 people worldwide.
Layoffs are nothing new at Disney. In recent years, the company has cut billions of dollars in expenses and eliminated thousands of jobs across its divisions, including ABC, Pixar, ESPN, its film studio and its experiences division. Last September, it laid off several hundred employees in its human resources and technology divisions. About 1,000 employees were laid off in April, along with several hundred others during 2025. In 2023, Disney cut 7,000 jobs as part of a $5.5 billion cost-saving plan under former CEO Bob Iger.
In early October, The Wall Street Journal reported that Disney was planning to restructure its television division and make cuts in its legal and global affairs departments.
Disney is not alone. Netflix, Sony, Paramount and divisions of Warner Bros. have also laid off employees amid declining revenue from traditional television and slowing growth in streaming subscriptions. Entertainment giants are also grappling with audiences shifting toward social media, online video and streaming services operated by technology companies such as Amazon and Apple.