Disney’s Year Of Cuts Continues, Thousands More Layoffs Incoming

Key Points:

• Disney plans to cut thousands of jobs as part of a broader cost-cutting effort, with managers asked to identify ways to reduce annual expenses by 20%, though this does not equate to eliminating 20% of the workforce.
• CEO Josh D’Amaro aims to reinvest some savings into film and TV programming, technology, theme parks, and cruise ships, but the exact number of layoffs and affected departments have not been disclosed.
• The layoffs continue a pattern in 2026, following previous job cuts in April, July, and September, including around 150 layoffs at Pixar despite strong box office performance.
• Employee benefits are also being reduced, with spousal health coverage being restricted starting in 2027 if spouses have access to employer-provided insurance, even if it offers fewer benefits.
• Despite these cuts, Disney reported strong financial results with increased revenue and operating income in its fiscal third quarter and has boosted its share buyback target, while simultaneously investing in AI talent and technology upgrades.