Disney Layoffs Could Hit Thousands, With Some Managers Told to Cut 20%

Disney layoffs could run into the thousands, according to a Bloomberg report. Some managers were reportedly asked to target 20% in annual cost savings.

However, CEO Josh D’Amaro plans to reinvest part of the savings into content, parks, cruises, and technology. The size of that reinvestment may shape how much Disney shareholders see in earnings.

A Year of Smaller Cuts Gives Way to a Bigger Plan

The plan comes after a year of smaller, targeted cuts at the entertainment company.

Disney eliminated about 1,000 positions in April and several hundred more in July. In September, it laid off a few hundred workers in human resources and technology.

Separately, The Wall Street Journal reported on October 1 that Disney planned to restructure its TV division.

Bloomberg, citing people familiar with the matter, said the savings could include expense cuts, with some divisions hit harder than others. Disney had about 231,000 employees at the end of fiscal 2025.

Reuters cited artificial intelligence (AI), a weaker box office, streaming rivals, and slower international park attendance as pressures. AI has been a common driver of job cuts across industries in 2026.

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The Earnings Promise the Cuts Have to Protect

Those pressures weigh on a profit target Disney has repeated to investors all year.

In its August shareholder letter, Disney reaffirmed double-digit growth in adjusted earnings per share (EPS) for fiscal 2027. Fiscal 2026 had an extra 53rd week, and Disney’s target measures growth without it.

Deeper savings would give Disney room to meet that target if parks or box office revenue softens.

Disney Layoffs Land on a Stock That Already Bounced Back

Disney stock has spent the past three months recovering from its summer lows. In late July, shares traded about 18% below where they started in 2026, according to TradingView data.

The rebound began in August, when shares jumped nearly 5% in premarket trading after quarterly results beat estimates. The rally carried the stock to within about 2% of its starting level by late August.

That gain faded through September. By early October, Disney stock had slipped back to roughly 10% below its 2026 starting level.

Shares recovered through most of October. By the November 2 close, DIS stock stood at $113.11, up 1.96% on the day. 

That close left Disney stock about 0.58% below where it started the year.

Disney’s Upcoming Earnings Report Puts the 20% Target Under the Lights

With the stock back near its starting level for the year, attention now turns to Disney’s next report. Disney earnings for the fiscal fourth quarter are expected before the market opens on November 17.

Analysts expect $1.68 per share, up 51.4% from $1.11 a year earlier, according to Barchart. A dollar figure for the savings and updated fiscal 2027 guidance would give investors a clearer read on the plan.

Disney is not cutting alone. Rivals such asNetflix, Sony Pictures, and Skydance’s Paramount and Warner Bros. units have also reduced staff. Those cuts trace back to falling traditional TV revenue and slower streaming subscriber growth

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