Walt Disney Company (DIS.US) Plans to Lay Off Thousands! Some Management Asked to Cut Costs by Up to 20%; Continued "Slimming Down" After New CEO Takes Office

Walt Disney Company (DIS.US) is planning to lay off thousands of employees as part of a new round of cost-cutting measures, according to people familiar with the matter. Some managers have been asked to cut costs by up to 20%. This would be another round of large-scale layoffs at Walt Disney Company since CEO Josh D'Amaro took office earlier this year. The people said Walt Disney Company is evaluating options to further reduce operating costs, with some divisions facing cost-cutting targets of up to 20%. However, the specific timing and departments involved in the layoffs are not yet clear. The potential layoff plan extends Walt Disney Company's ongoing organizational streamlining and cost-control measures this year. In April, Walt Disney Company had planned to cut up to 1,000 employees, mainly in the marketing department. Then in September, the company announced the elimination of about 300 employees, many of them in human resources and technology. If the latest round of layoffs is implemented, it would mean Walt Disney Company will carry out multiple rounds of personnel adjustments within just a few months, further reflecting management's determination to control costs and improve operational efficiency. In fact, Walt Disney Company management has previously made clear that more cost-cutting measures may be taken in the future. In the quarterly earnings report released in August, Walt Disney Company executives warned investors that the company is advancing a broader cost-optimization plan. D'Amaro and Chief Financial Officer Hugh Johnston said in a letter to shareholders on August 5: "We remain highly focused on reducing costs across the entire company to free up more resources to support growth investments, and are evaluating a variety of viable measures." The two also noted that the work is still in progress and the company will update investors on progress in due course. In addition to layoffs, Walt Disney Company is also reducing headcount through a voluntary retirement program. In August, Walt Disney Company introduced a voluntary retirement program for some employees to further adjust its organizational structure. Walt Disney Company Chief Human Resources Officer Sonia Coleman said in a letter to employees on August 24 that the voluntary retirement program is just one of several measures the company is taking to reshape its organizational structure. She noted: "This is just one of several actions we are taking to reshape our organization, including involuntary layoffs that have already begun in some business areas and will continue into next year." That statement means Walt Disney Company had already planned to extend its headcount-reduction measures into 2027. According to Walt Disney Company's fiscal 2025 annual report, the company had approximately 231,000 employees as of the end of the fiscal year in September 2025. Based on that headcount, cutting thousands of employees would have a certain impact on the company's overall workforce structure. However, because the final scale of the latest layoff plan has not been determined, it is still difficult to assess its specific impact. It is worth noting that Walt Disney Company is not the only entertainment industry giant to push large-scale cost cuts recently. As industry competition intensifies, several major entertainment companies are controlling operating expenses through layoffs and organizational integration. Netflix (NFLX.US) said in an internal memo last month that it plans to cut about 6% of its workforce. Meanwhile, Skydance (SKYD.US), formed by the merger of Paramount and Warner Bros. Discovery, is also expected to implement layoffs to help drive its goal of achieving US$6 billion in cost synergies over the next three years. A series of layoff plans shows that, against the backdrop of continued financial pressure from content production, streaming competition and business integration, the entertainment industry is further strengthening cost management to improve profitability and free up investment space for future growth. For Walt Disney Company, the new round of layoffs will also be an important window for observing D'Amaro's business strategy after taking office. The company is trying to strike a balance between controlling costs and supporting long-term business growth, and whether personnel adjustments can effectively improve profitability will be closely watched by investors. Walt Disney Company plans to report fourth-quarter fiscal 2026 results on November 17. At that time, investors will pay close attention to the latest progress of the company's cost-cutting plan and whether management will disclose more information about the scale of layoffs, the amount of savings and future operating strategy.