Walt Disney Company (NYSE:DIS) is considering eliminating thousands of positions as part of a new restructuring initiative aimed at reducing operating expenses and improving profitability, according to a Bloomberg News report published Monday.
Citing people familiar with the discussions, Bloomberg reported that Disney has asked certain managers to identify opportunities to achieve annual cost savings of 20%. The proposed measures come as Chief Executive Officer Josh D’Amaro addresses mounting challenges across the entertainment company’s film, television, streaming and theme park businesses.
The number of positions potentially affected has not been disclosed, and Disney has not publicly confirmed the reported plans.
According to Bloomberg, Disney’s leadership has instructed some managers to pursue annual cost reductions of approximately 20%, although the financial impact and distribution of the savings have not been specified.
The proposed restructuring is expected to affect different parts of the business unevenly, with certain operations potentially facing larger reductions than others.
The report indicates that Disney is examining its cost structure as it seeks to improve efficiency and redirect resources towards strategic priorities.
Although thousands of jobs could be eliminated, the company has not provided an official estimate of the potential workforce reduction.
Disney employed approximately 231,000 people at the end of fiscal 2025, highlighting the scale of its global operations.
The company did not immediately respond to a Reuters request for comment submitted outside regular business hours.
The reported restructuring comes as CEO Josh D’Amaro navigates a changing operating environment for Disney.
Among the challenges identified are the growing adoption of artificial intelligence, weaker box office revenue and increasing competition from streaming platforms.
Disney is also facing slower international attendance at its theme parks, adding pressure to a business that represents an important part of its broader entertainment operations.
These developments have increased the importance of controlling expenses while maintaining investment in content, technology and customer experiences.
Artificial intelligence is also reshaping parts of the media industry, creating opportunities for operational efficiencies while raising questions about future staffing requirements.
The reported cost-cutting initiative suggests that Disney is evaluating how to allocate resources across its businesses in response to these changes.
Bloomberg reported that D’Amaro intends to reinvest part of the savings generated by the proposed restructuring into selected growth areas.
These include film and television programming, technology, theme parks and Disney’s cruise ship operations.
The approach would combine reductions in certain operating expenses with continued investment in businesses considered important to the company’s longer-term development.
For Disney’s entertainment divisions, additional resources could support programming and content production as competition for audiences continues.
Investment in technology could also help the company improve operational efficiency and adapt to changes in digital entertainment.
Meanwhile, spending on theme parks and cruise ships would support Disney’s experiences business, even as international park attendance faces pressure.
The report did not specify how much of the proposed savings would be reinvested or provide a timetable for implementing the changes.
The latest reported plans follow several rounds of job cuts across Disney in recent years.
In September, Reuters reported that the company was eliminating several hundred positions in its human resources and technology departments.
Disney had previously reduced its workforce by approximately 1,000 positions in April and eliminated several hundred additional roles during 2025.
A larger restructuring programme took place in 2023 under former CEO Bob Iger, when Disney announced plans to eliminate approximately 7,000 jobs as part of an initiative targeting $5.5 billion in cost savings.
Those measures were intended to improve profitability and streamline operations across the entertainment group.
The potential new reductions would extend Disney’s efforts to manage costs as the media industry continues to evolve.
However, the scope and timing of the latest reported restructuring remain uncertain.
Disney is not alone in reviewing staffing levels and operating expenses.
Other major media and entertainment companies have also implemented workforce reductions as they respond to changing audience behaviour, streaming competition and pressure to improve financial performance.
Netflix and Skydance are among the companies that have reduced jobs to control costs.
Skydance, which acquired Warner Bros. Discovery earlier this year, has also pursued workforce reductions following the transaction.
The broader industry trend reflects efforts to balance investment in programming and technology with the need to maintain sustainable operating costs.
For Disney, the challenge involves managing expenses across a diversified business that includes traditional entertainment, streaming services and physical attractions.
Disney’s reported consideration of thousands of layoffs and annual cost-saving targets of 20% for certain managers signals a potential new phase in its restructuring efforts.
The measures would follow several previous workforce reductions and could allow the company to redirect spending towards film and television production, technology, theme parks and cruise operations.
However, Disney has not confirmed the reported plans, and the number of positions affected, the financial savings and the implementation schedule remain unclear.
Investors will be monitoring whether management formally announces additional restructuring measures and how any savings could affect profitability and future investment.
The company’s ability to reduce costs while maintaining competitive entertainment offerings and supporting its experiences business will remain an important consideration.
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