Disney Eyes Thousands of Layoffs as Some Managers Are Asked to Target 20% in Cost Savings
CEO Josh D'Amaro reportedly wants to reinvest part of the savings in film and TV, technology, parks and cruise ships; Disney declined to comment.
The Walt Disney Company (DIS) is moving toward thousands of job cuts, and some managers have been asked to target 20% in annual cost savings, according to published reports citing people familiar with the matter. The savings could come from eliminating jobs as well as cutting other expenses. A Disney representative declined to comment, and no exact number of layoffs or start date has been reported.
What is reported
| Item | Detail |
|---|---|
| Scale | “Thousands” of job cuts; no exact figure |
| Target | Some managers asked to target 20% in annual savings, from jobs and other expenses |
| Hardest hit | Theme parks, the TV network and the movie studio, reportedly disproportionately |
| Past cuts | Have touched ABC, Pixar, ESPN, the film studio and the experiences unit |
| Timing | No date reported |
| Company response | Declined to comment |
Where the savings would go
Chief Executive Josh D'Amaro reportedly wants to reinvest part of the savings in film and television programming, technology, and the theme parks and cruise ship businesses. Disney has promised double-digit adjusted earnings-per-share growth in the current fiscal year. At a conference last month, President Dana Walden said there is a need to constantly evaluate how the company is structured and how big the organization is.
Earlier restructuring signals
A separate report on Oct. 1 said Disney was planning a restructuring of its television division and cuts at its legal and global affairs unit. Disney had 231,000 employees worldwide at the end of its last fiscal year.
What to watch
- Company confirmation. Whether Disney confirms a number or timeline, or announces the cuts in its next earnings report.
- Segment impact. How reductions fall across parks, television and the studio.
- Reinvestment. Where the money goes among programming, technology, parks and cruises.
- Guidance. Whether cost savings support the promised double-digit adjusted EPS growth. Filings are on Disney's investor relations site and the SEC.
- Related coverage. See our Nasdaq analysis, the Week Ahead preview and Starbucks earnings.
Sources: Disney's investor relations site and SEC filings. The job-cut plans and targets come from published reports that cite unnamed sources and have not been confirmed by Disney. This article is informational only and is not investment advice.
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