After streaming wars, Disney plans layoffs: Thousands of jobs may go in cost-cutting drive

Walt Disney is reportedly planning a major restructuring plan, which could impact thousands of employees. According to a Bloomberg report, Disney is considering reducing operating costs and has asked managers across teams to find ways to reduce their department's yearly expenses by around 20%. The move is being seen as part of a larger restructuring exercise under CEO Josh D’Amaro.

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Disney layoffs: Why is it considering cost cutting?

As per the report, Disney is currently facing multiple challenges, including how AI is revamping the entertainment industry and disrupting existing business models, weak box office performance, competition, and lower attendance at its theme parks. Hence, by cutting a few roles, it may be able to save some costs. It was highlighted that some parts of Disney's business could face deeper cuts than others.

The company plans to use these cost-cutting measures to reinvest in some of its areas, which are important for future growth, such as movies and TV shows, technology, theme parks, and cruise ships. However, the report did not provide an exact number on how many employees could be laid off.

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Currently, Disney had approximately 231,000 employees at the end of fiscal 2025. In April, the company laid off around 1000 employees as part of its restructuring plan. In September 2026, it laid off hundreds of employees in the human resources and technology divisions. This showcases that Disney has been continuing to streamline its workforce as part of a broader cost-cutting and restructuring exercise.

However, Disney is not alone when it comes to restructuring, as technology companies around the globe are also cutting jobs and analysing their workforce requirements amid rising costs, intensifying competition, and the growing adoption of AI. Netflix has also undertaken workforce reductions this year, adding to a broader trend of job cuts across the technology and entertainment industries.