Disney to Lay Off Thousands of Employees and Invest Some of the Savings in Movies and Theme Parks — Bloomberg

Walt Disney may cut thousands of jobs, Bloomberg reported, citing sources. Disney CEO Josh D'Amaro intends to invest part of the savings in movies and TV series, technology, theme parks, and the cruise business. At the same time, the company has promised investors double-digit growth in adjusted earnings per share for the current fiscal year, which began in October, the agency notes.

According to Bloomberg, some Disney executives are being required to achieve 20% annual cost savings. The company can achieve this either through layoffs or by cutting other costs, with some divisions being hit harder than others, sources told the agency. Reuters notes that the report does not specify how many people will lose their jobs. A Disney spokesperson declined to comment.

Before being named Disney’s CEO in March, D’Amaro had headed the company’s theme parks, and in his new role he set out to streamline the company’s structure, which had developed numerous centers of influence, The Wall Street Journal reported in early October. According to the newspaper, layoffs have already affected the marketing department, Pixar, the ABC News division, and the ESPN sports channel, and in late September, Disney let go of more than 300 employees. The company is also preparing to restructure its television business, which is expected to result in hundreds of layoffs and the merger of divisions, the publication reported.

Most Hollywood studios have cut costs because streaming brings in only a fraction of the revenue that cable television used to generate, the WSJ noted. Other entertainment companies are also cutting staff, including the streaming service Netflix, Sony Pictures Entertainment, and the Paramount and Warner Bros. divisions owned by Skydance. Revenue from broadcast and cable television is falling, subscriber growth for streaming platforms has slowed, and viewers are increasingly turning to social media, online videos, and video services from tech giants such as Amazon’s Prime Video and Apple TV, Bloomberg explains.

The main goal of Disney’s reorganization of its television business is to structure it around streaming viewers, rather than around brands created decades ago for broadcast television, one source told the WSJ. “You have to constantly evaluate how you’re structured and how large the organization is. Tech companies have set their sights on our business, and we must survive, thrive, and grow—and that’s exactly what we intend to do,” Disney President Dana Walden said in October at the Bloomberg Screentime conference.

Year-to-date, Disney’s stock has returned 0.2%, while the S&P 500 index has returned 10.2%. Bloomberg reported the news of the layoffs on Monday evening New York time, after the company’s stock had already risen 2% during the main trading session. In after-hours trading, the price remained virtually unchanged.

Wall Street’s average price target for Disney shares is $126.6, which implies an upside potential of 11.9% relative to the latest closing price, according to Yahoo Finance. The next key event for investors is the report for the fourth quarter of fiscal year 2026, which Disney will release on November 17 before the market opens.

This article was AI-translated and verified by a human editor