Expense reduction and previous layoffs
Disney managers face orders to cut expenses by 20% on an annualized basis, according to a Bloomberg News report. The scale of these cuts is clearly the largest of the year. This upcoming round of job cuts will be the fourth in 2026 under CEO Josh D’Amaro and will affect more staffers than any previous round this year. D’Amaro intends to reinvest a portion of these savings into film and TV programming, technology, and the theme parks and cruise ship businesses. In April, the company eliminated about 1,000 roles primarily because CEO Josh D’Amaro formed a consolidated enterprise marketing division under the leadership of Asad Ayaz, the chief marketing and brand officer for the company. After those cuts, Disney eliminated several hundred jobs in July across Pixar, ESPN, Disney Entertainment Television, and Disney studios. In September, the company let go of a few hundred employees in human resources and IT departments across corporate and various divisions.
Last month, the Wall Street Journal reported that Disney planned a major restructuring of its TV operations that would eliminate hundreds of jobs and consolidate divisions. Some Disney operations will be affected disproportionately, according to Bloomberg News, though the report does not name the specific areas that will suffer the brunt of the cutbacks. D’Amaro and CFO Hugh Johnston previously indicated that more job cuts were coming after they announced June 2026 quarter results. The executives wrote in an August 5 letter to shareholders that the company remains highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth. They are evaluating various levers, including reductions in labor and SG&A.
Executive buyouts and industry context
Disney offered early-retirement buyout packages to long-tenured executives in August as part of its ongoing cost-cutting efforts. The program applied to U.S.-based employees at the director through EVP levels within the Disney Entertainment, ESPN, and corporate divisions.
| Buyout Condition | Specification |
|---|---|
| Minimum Age | 50 |
| Minimum Service | 10 years |
| Eligible Tiers | Director through EVP |
| Location | United States |
Dana Walden, Disney president and chief creative officer, addressed recent layoffs at a Bloomberg conference last month. Walden noted that Disney, like its competitors in the tech industry, must constantly evaluate how it is structured. She said the buyout program "was extremely generous" and gave long-tenured executives "agency" regarding whether the timing was right to leave. Walden told the Bloomberg Screentime event that the company must survive and thrive as technology sets its sights on the business. Other media organizations are also reducing headcount. Netflix axed about 1,000 workers last month, and Skydance, the company formed via the merger of Paramount and Warner Bros. Discovery, expects to make significant layoffs by the end of the year. Disney will report results for the September quarter on Nov. 17 before the market opens.
