Disney Weighs Thousands of Job Cuts Under New CEO D'Amaro

What happened

Disney is considering cutting thousands of jobs and has asked some managers to target 20% in annual cost savings, Bloomberg reported. Shares were down 0.50% in premarket. CEO Josh D'Amaro, who succeeded Bob Iger in March, is also aiming to reinvest part of the savings in film and TV programming, technology, theme parks and cruise ships.

Confirmed

Global impact / market context

Cutting thousands of roles lowers Disney's wage bill, which can protect profit while box office revenue is weaker. Because part of the savings is earmarked for reinvestment, the plan signals spending on new content and parks rather than pure cost reduction, which affects how investors judge future growth.

Analyst inference

Disney has cut jobs for years, including 7,000 roles in 2023 under a $5.5 billion savings program. Netflix and Skydance have also reduced staff. This suggests streaming and studio firms are trimming costs industry-wide as AI adoption and tougher competition pressure revenue and attendance.

Analyst inference

What to watch

1. Disney employed about 231,000 people at the end of fiscal 2025, so watch for specific layoff numbers and which operations take a larger share of the cuts. Confirmed
2. Managers were asked to target 20% annual cost savings, so watch whether Disney confirms that target and how much of the savings is actually reinvested. Proposed
3. Watch whether weaker box office revenue, streaming competition and slower international park attendance continue, since those pressures are driving the cost-cutting plan. Analyst inference

Evidence

• gurufocus.com