Disney is planning to eliminate several thousand positions, people familiar with the matter told CNBC, with some managers asked to reduce costs by up to 20%. The move marks the latest round of layoffs since CEO Josh D'Amaro took the reins earlier this year, following separate plans in April to cut as many as 1,000 employees and in September to cut about 300.
The job reductions come after company executives warned of the possibility of more reductions in its August earnings report. “We remain highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers,” D'Amaro and Chief Financial Officer Hugh Johnston wrote in an Aug. 5 letter to shareholders.
In August, Disney introduced plans for an early retirement program for some employees. In a letter to employees on Aug. 24, Chief People Officer Sonia Coleman wrote: “This is one of several actions we're taking to reshape our organization, including involuntary staff reductions that have already begun in some areas and will continue into next year.”
Disney reported about 231,000 employees at the end of its fiscal 2025 year in September. The company is expected to report its fiscal fourth-quarter earnings on Nov. 17.
Disney is not alone in seeking savings. Netflix said in a memo last month it would lay off roughly 6% of its workforce. Skydance, the newly combined entity of Paramount and Warner Bros. Discovery, is also expected to reduce staff as it aims for billions in synergies.
Bloomberg first reported the latest round of layoffs.
Analysis
Why This Matters
- Disney is a bellwether for the entertainment industry; its cost-cutting suggests broader pressures.
- The layoffs affect thousands of jobs and may impact content production and park operations.
- Other major entertainment companies are also reducing headcount, signaling industry-wide consolidation.
Background
Disney is a global entertainment conglomerate with theme parks, film studios, and streaming services. CEO Josh D'Amaro took the helm earlier this year and has pursued aggressive cost reduction. The company had already trimmed marketing, human resources, and technology roles in previous rounds.
What to Watch
- Disney's fiscal Q4 earnings on Nov. 17 will reveal the financial results of its cost-cutting efforts.
- Further involuntary layoffs are expected to continue into next year.
- The effectiveness of early retirement programs and cost-reduction targets may influence other entertainment firms.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedDisney is planning to cut several thousand jobs, according to people familiar with the matter who spoke to CNBC.US Top News and Analysis: “Disney is planning to cut several thousand jobs, people familiar with the matter told CNBC.”
- SupportedSome managers were asked to reduce costs by up to 20%.US Top News and Analysis: “Some managers at the entertainment giant have been asked to reduce costs by up to 20%, according to the people”
- SupportedThe latest layoffs continue Disney’s cost-cutting drive after earlier reductions.US Top News and Analysis: “It marks the latest round of layoffs since CEO Josh D'Amaro took the reins earlier this year.”
- SupportedDisney planned in April to cut as many as 1,000 employees.US Top News and Analysis: “separate plans in April to cut as many as 1,000 employees”
- SupportedDisney planned in September to cut about 300 employees.US Top News and Analysis: “and in September to cut about 300 employees”
- SupportedD'Amaro and CFO Hugh Johnston wrote: “We remain highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers,”US Top News and Analysis: “"We remain highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers," D'Amaro and CFO Hugh Johnston wrote”
- SupportedChief People Officer Sonia Coleman wrote: “This is one of several actions we're taking to reshape our organization, including involuntary staff reductions that have already begun in some areas and will continue into next year.”US Top News and Analysis: “"This is one of several actions we're taking to reshape our organization, including involuntary staff reductions that have already begun in some areas and will continue into next year," Chief People Officer Sonia Coleman wrote”
- SupportedDisney introduced plans in August for an early retirement program for some employees.US Top News and Analysis: “Disney introduced plans in August for an early retirement program for some employees.”
- SupportedDisney had about 231,000 employees at the end of fiscal 2025, which ended in September.US Top News and Analysis: “Disney had about 231,000 employees as of the close of its fiscal year 2025, which ended in September of that year”
- SupportedBloomberg was first to report the latest round of layoffs.US Top News and Analysis: “Bloomberg was first to report the latest round of layoffs.”
- SupportedNetflix said in a memo last month that it would lay off roughly 6% of its workforce.US Top News and Analysis: “Netflix said in a memo last month that it would lay off roughly 6% of its workforce”
- SupportedSkydance, the newly combined company of Paramount and Warner Bros. Discovery, is expected to cut staff to realize billions in synergies.US Top News and Analysis: “Skydance, the newly combined company of Paramount and Warner Bros. Discovery, is also expected to cut staff in an effort to realize $6 billion in synergies over three years.”
