Disney May Cut Thousands of Jobs as Managers Aim for 20% Savings

Bloomberg reports that Disney's job cuts could number in the thousands. Managers are said to have been asked to aim for savings of 20% in annual costs.

CEO Josh D’Amaro, however, plans to steer part of those savings back into content, parks, cruises and technology. The scale of that reinvestment could affect the earnings Disney shareholders ultimately see.

A Year of Smaller Cuts Gives Way to a Bigger Plan

That approach follows a year in which the entertainment company made smaller, targeted reductions.

In April, Disney cut around 1,000 jobs, with several hundred more eliminated in July. A few hundred positions in human resources and technology were removed in September.

Separately, The Wall Street Journal reported on October 1 that Disney was planning to restructure its TV division.

Drawing on people with knowledge of the situation, Bloomberg said the cost reductions could include expense cuts, with some divisions taking larger hits than others. Disney had about 231,000 employees when fiscal 2025 came to an end.

Reuters pointed to artificial intelligence (AI), a weaker box office, streaming competitors and slower international park attendance as pressures. AI has been a common driver of job reductions across industries in 2026.

The Earnings Promise the Cuts Have to Protect

Those pressures hang over a profit goal Disney has repeated to investors throughout the year.

In its August letter to shareholders, Disney reaffirmed that adjusted earnings per share (EPS) would grow at a double-digit rate in fiscal 2027. Fiscal 2026 contained an extra 53rd week, and the target excludes that week's effect.

Should parks or box-office revenue soften, deeper savings would give Disney more room to still meet that target.

Disney Layoffs Land on a Stock That Already Bounced Back

Disney shares have spent the past three months climbing out of their summer lows. In late July, the stock was about 18% below its 2026 starting level, TradingView data showed.

The bounce began in August, when the stock climbed nearly 5% in premarket trading after quarterly results came in above expectations. By late August, that advance had brought DIS stock to within roughly 2% of its level at the start of the year.

That gain faded over the course of September. By early October, the shares had slipped to around 10% below their 2026 starting point.

Most of October brought another recovery. At the November 2 close, DIS stood at $113.11, up 1.96% on the day.

That left shares roughly 0.58% below their level at the start of the year.

Disney’s Upcoming Earnings Report Puts the 20% Target Under the Lights

With the stock back near its level at the start of the year, focus now moves to Disney's next earnings report. Disney's fiscal fourth-quarter numbers are due before the market opens on November 17.

Barchart data shows analysts projecting $1.68 per share, a 51.4% increase from the $1.11 reported a year earlier. A dollar amount for those savings and revised fiscal 2027 guidance would make the plan easier for investors to assess.

Disney is not the only company making cuts. Its rivals, including Netflix, Sony Pictures and the Paramount and Warner Bros. units of Skydance, have also trimmed staff. Those moves stem from declining traditional TV revenue and slower growth in streaming subscriptions.