Disney is planning to lay off several thousand employees as part of an ongoing cost-reduction initiative under CEO Josh D'Amaro, who took the helm earlier this year [1]. Some managers at the entertainment giant have been asked to reduce costs by up to 20% [1]. This represents the latest round of job cuts following previous reductions in April (approximately 1,000 employees, predominantly in marketing) and September (about 300 employees in human resources and technology divisions) [1].
The layoffs align with Disney's broader cost-reduction strategy announced in its August earnings report, where D'Amaro and CFO Hugh Johnston stated the company was "mid-stream" in evaluating "a variety of levers" to reduce costs across the enterprise and create capacity for growth investments [1]. Chief People Officer Sonia Coleman indicated in an August 24 letter that involuntary staff reductions had already begun in some areas and would continue into next year, alongside an early retirement program introduced in August [1]. As of the close of fiscal year 2025 in September, Disney employed approximately 231,000 people [1].
Disney's cost-cutting efforts reflect broader industry trends, as Netflix announced layoffs of roughly 6% of its workforce, and the newly combined Paramount-Warner Bros. Discovery entity (Skydance) is expected to cut staff to realize $6 billion in synergies over three years [1]. Disney will report its fiscal fourth-quarter earnings on November 17, which will likely provide further details on the scope and financial impact of these restructuring efforts [1].
CONCLUSION
Disney's multi-phase layoff strategy, targeting several thousand employees with cost reductions up to 20%, signals aggressive restructuring under new CEO leadership to improve profitability and fund growth initiatives. The layoffs, combined with industry-wide cost-cutting trends, suggest significant operational changes ahead that will likely be detailed in Disney's November 17 earnings report.