Disney Eyes Thousands of Layoffs, With Managers Asked to Cut 20%

Walt Disney Co. is preparing for significant workforce reductions, with reports indicating that the entertainment powerhouse is asking some of its managers to aim for a 20% reduction in annual costs. This strategy is expected to lead to thousands of job losses, as well as cuts in various expenses, according to sources who requested anonymity due to the sensitive nature of the discussions.

The anticipated cost savings will not be uniform across all divisions of the company, which includes theme parks, television networks, and film production. CEO Josh D'Amaro is reportedly planning to reinvest a portion of the savings into enhancing film and television content, advancing technology, and improving operations within the theme parks and cruise lines.

Disney has previously stated its goal of achieving double-digit growth in adjusted earnings per share for the ongoing fiscal year. However, a spokesperson for the company has declined to provide any comments regarding the potential layoffs.

In recent years, Disney has implemented cost-cutting measures amounting to billions of dollars, resulting in the elimination of thousands of jobs across various sectors, including ABC, Pixar, ESPN, and the film studio, as well as its experiences division. As of the end of the last fiscal year, the company employed approximately 231,000 individuals globally.

An article published by The Wall Street Journal on October 1 indicated that Disney is also looking to restructure its television division, with potential cuts to its legal and global affairs departments.

Disney is not alone in facing challenges; other entertainment firms such as Netflix, Sony Pictures, and Paramount's Warner Bros. divisions have also made job cuts in response to declining traditional television revenues and a slowdown in streaming subscriber growth. The industry is grappling with a shift in viewership as more audiences turn to social media, online videos, and streaming platforms supported by major tech companies like Amazon and Apple.

During the Bloomberg Screentime conference held in Los Angeles last month, Disney President Dana Walden emphasized the necessity of regularly assessing the organizational structure and size. "Technology set their sights on our business, and we must survive and thrive and grow, and that's what we're going to do," she stated, highlighting the ongoing pressures the company faces in a rapidly evolving entertainment landscape.