Bengaluru: The Walt Disney Company is reportedly considering thousands of job cuts as part of a fresh cost-reduction drive, with some managers asked to identify annual savings of 20% across their operations.

The proposed restructuring comes as the entertainment giant faces pressure to improve profitability amid changing viewing habits, competition in the streaming market, weaker box-office performance and slower international attendance at its theme parks.

The development was first reported by Bloomberg, citing people familiar with the discussions. The report did not specify the exact number of positions that could be eliminated or provide a confirmed timeline for the proposed reductions.

Disney had approximately 2,31,000 employees worldwide at the end of fiscal year 2025. The potential cuts could affect different parts of the company’s operations, although some divisions are expected to face a greater impact than others.

Managers asked to identify 20% annual savings

According to the Bloomberg report, Disney has asked some managers to work towards a target of 20% in annual cost savings. The savings could come from eliminating positions as well as reducing other operating expenses.

The target does not mean that 20% of employees will lose their jobs. Instead, it is a cost-reduction objective that managers are expected to achieve through a combination of workforce and non-workforce measures.

The scale and distribution of any job reductions have not been disclosed. Reports indicate that Disney’s operations, which include its theme parks, television networks and film studio, may not be affected equally.

A Disney representative did not immediately comment on the reported restructuring. The company has not publicly confirmed a final number of job cuts or identified specific teams that will be affected.

Josh D’Amaro plans to reinvest savings

The reported restructuring is taking place under CEO Josh D’Amaro, who took over the leadership of Disney in 2026.

A portion of the savings is expected to be reinvested in areas considered important to the company’s future growth. These include film and television programming, technology, theme parks and cruise businesses.

The strategy reflects the challenges facing large entertainment companies as audiences increasingly shift between traditional television, streaming platforms, social media and online video services.

Disney operates a broad entertainment business that includes film and television production, sports broadcasting, streaming services, theme parks and consumer experiences. Maintaining investment across these businesses while controlling operating costs has become an important management priority.

The company has also been dealing with changes in the economics of television and streaming. Traditional television networks face declining audiences, while streaming businesses must compete for subscribers and manage content production and distribution costs.

D’Amaro’s reported cost-reduction approach therefore combines organisational restructuring with a plan to direct resources towards selected growth areas.

Disney has already carried out several rounds of layoffs

The latest report follows multiple rounds of workforce reductions at Disney in recent years.

In 2023, the company announced a major restructuring that included approximately 7,000 job cuts as part of a plan to reduce costs by around $5.5 billion. The reductions affected several divisions, including television, film, sports and corporate operations.

Disney also eliminated several hundred positions in 2025. In April 2026, the company carried out another round affecting around 1,000 employees across areas that included marketing, television, ESPN, product and technology teams and corporate functions.

Further reductions followed during the year. In July, several hundred positions were reportedly affected across ESPN, Disney Entertainment Television, Pixar and National Geographic. In September, Disney also cut several hundred employees across human resources and technology functions, according to reports.

These repeated changes indicate that the company has continued to review its organisational structure rather than relying on a single restructuring exercise.

Which Disney employees could be affected?

At this stage, Disney has not released a confirmed list of divisions or job categories that will face the proposed cuts.

The Bloomberg report indicates that some operations could bear a larger share of the reductions than others. The company’s broad structure includes theme parks and resorts, television networks, film studios, streaming operations, technology teams and corporate functions.

Disney’s television and film businesses are undergoing changes as traditional distribution models evolve. Its theme park and cruise operations, meanwhile, remain important areas for investment. The company’s stated intention to reinvest part of the savings in these businesses does not establish that their employees will be protected from job reductions.

The reported 20% savings target also does not provide a basis for calculating how many employees will lose their jobs. Some of the savings could be achieved through reductions in other expenses, and the final workforce impact remains unknown.

Employees will therefore have to wait for further company communication before the affected teams, locations and timelines become clear.

AI and streaming competition add to industry pressure

Disney’s reported restructuring comes amid wider changes across the global entertainment industry.

Artificial intelligence is changing production, marketing, technology and other business processes. At the same time, streaming platforms face competition for viewers and pressure to balance content spending with profitability.

Traditional television businesses are also dealing with declining audiences and changing advertising patterns. More consumers are spending time on streaming services, social platforms and online video, creating pressure on established media companies to adapt.

Other entertainment businesses, including Netflix and companies associated with the Paramount and Warner Bros. divisions, have also undertaken job reductions as they review costs and organisational structures.

For Disney, the latest reported plan signals another phase of cost control under D’Amaro. However, the company has not confirmed the number of jobs involved, the divisions that will be affected or when any new reductions may take place.