BURBANK (Realist English). According to Bloomberg, citing sources familiar with the situation, Disney is moving toward thousands of job cuts. Some managers have already been instructed to find opportunities for annual savings of up to 20%. As Variety notes, this will be the fourth round of layoffs in 2026 and the largest in terms of headcount under CEO Josh D’Amaro.
Scale and mechanism
The 20% figure describes a savings target for individual managers, not an announced company-wide workforce reduction. The final number of affected employees and the timeline of layoffs have not yet been publicly established. Savings can be achieved through both eliminating positions and reducing expenses. Some divisions — from theme parks and television networks to the film studio — will be hit disproportionately harder than others.
Series of cuts and pressure on the business
The new round continues a series of cuts that began after D’Amaro took over as CEO on 18 March 2026. This year alone, Disney has already carried out several waves: in April, about 1,000 positions were eliminated as part of creating a consolidated marketing unit; in July, several hundred positions at Pixar, ESPN and the television division; and in September, several hundred more, primarily in HR and IT. In August, the company offered early retirement packages to long-serving executives, and according to sources, participation exceeded expectations.
Several factors are putting pressure on Disney: slowing growth in streaming subscriber numbers, declining revenue from traditional television, weaker box office receipts and slower international park attendance. An additional challenge is the growing use of artificial intelligence, forcing the company to reconsider expenses and organizational structure.
Where the saved funds will go
D’Amaro plans to reinvest part of the savings into the production of film and television programs, technology, as well as parks and the cruise business. The company has promised double-digit growth in adjusted earnings per share in the current fiscal year. Disney’s Chief Human Resources Officer Sonia Coleman, in an August memo, linked the cost-cutting campaign to continued investment in content, technology and experiences.
For comparison: the previous restructuring under Bob Iger included about 7,000 cuts in 2023 as part of a $5.5 billion savings program. The new round thus adds to multi-year efforts to reduce costs.
Market and industry reaction
Disney declined to comment. The situation reflects a general trend in the media industry: similar cuts are being made by Netflix, Sony Pictures, Paramount and Warner Bros., facing the same challenges — falling revenue from traditional TV and slowing streaming growth. Disney President Dana Walden, speaking at the Bloomberg Screentime conference, said: “There is a need to constantly evaluate how you are structured and how large the organization is. Technology has targeted our business, and we must survive, thrive and grow.”
Analytical conclusion
The new round of layoffs at Disney is not a one-off anti-crisis measure but a continuation of the structural restructuring that began after the CEO change. The 20% savings target for individual divisions signals that the company intends not just to cut staff but to change the very model of expenses, reallocating resources in favor of content, technology and parks.
However, the key question is whether Disney can achieve the promised double-digit growth in earnings per share through these measures, or whether the cuts will be only temporary relief amid fundamental pressure on traditional media. For employees and the entertainment labor market, this means continued painful adaptation to a new economic reality where streaming and AI are changing the rules of the game faster than companies can restructure.
