Disney plans thousands of layoffs to hit 20 percent cost cut target

Disney managers are targeting 20 percent cost cuts that could lead to thousands of layoffs, though no official announcement is made yet.

Layoffs · Source: Reuters

What happened

Walt Disney is preparing for thousands of job cuts across the company. Managers have been asked to find up to 20 percent in annual cost savings. This news comes from a recent Bloomberg report. Disney has not officially announced the layoffs or shared a timeline for when notices will go out.

The cuts will not be spread evenly across the company. Some divisions will face heavier reductions than others. CEO Josh D'Amaro is navigating several major challenges right now. These include the growing use of artificial intelligence, weaker box office revenue, and intense competition from streaming rivals. The company is also dealing with a slowdown in international attendance at its theme parks.

Despite these challenges, D'Amaro plans to take part of the savings and reinvest them. The money will go toward film and television programming, technology, theme parks, and cruise ships. Disney has been reducing its workforce steadily over the past few years. The company cut 7,000 roles in 2023 and roughly 1,000 positions this past April. In September, a few hundred employees in human resources and technology were laid off. Last month, Disney Experiences cut up to 200 jobs, mostly at Imagineering in Glendale.

By the numbers

Why it matters

For people looking for work in media and entertainment, this signals a major shift in where jobs will be available. Disney is moving away from certain traditional roles to focus on specific growth areas. The company is still spending heavily, including a recent 115 million dollar purchase for a new campus in Cypress. If you are applying to Disney, the safest bets are in the departments receiving the reinvested funds. Roles in technology, parks, and cruises will likely see more stability than general corporate or traditional television divisions.

This move reflects a broader trend across the entertainment industry. Companies like Netflix, Sony Pictures Entertainment, and Skydance are also cutting jobs. Traditional television revenue is shrinking while streaming growth slows down. Job seekers should expect fewer openings in legacy media divisions across the board. Instead, candidates will need to pivot their skills toward digital platforms, artificial intelligence, and physical experiences. The industry is changing direction, and workers must adapt to where the capital is flowing.

Who this hits

Entertainment and media workers

Traditional television and corporate staff face the highest risk of job losses as legacy media shrinks. However, those with skills in technology or physical park operations may find new openings as Disney reinvests in those areas.

Technology professionals

Disney laid off a few hundred technology and human resources employees in September. While some tech roles were cut recently, the company still plans to reinvest savings back into technology, meaning specialized tech roles may survive or grow.

Theme park and cruise workers

Disney is committing massive investments to its parks and cruise lines, including adding five more ships by 2031. Workers in these physical experience divisions are in a growth area, though specific corporate roles tied to them could still face restructuring.

International workers on visas

A large restructuring creates uncertainty for workers relying on employer sponsorship. If your division is targeted for cost cuts, you may need to prepare a backup plan for your visa status before notices go out.

What to do this week

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My take

I see this as a clear pivot rather than just a simple cost reduction. Disney is cutting jobs in older divisions to fund its future in tech, parks, and cruises. If you are targeting the entertainment sector, you need to align your skills with where the company is actually spending its money.

Sources

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