Disney plans thousands of layoffs as managers asked to cut costs by 20%

California: Walt Disney is considering cutting thousands of jobs as the entertainment giant seeks to reduce costs, with some managers asked to identify annual savings of 20 per cent, Bloomberg reported, citing people familiar with the matter.

The proposed reductions could involve layoffs and cuts to operating expenses, according to the sources, who requested anonymity because the discussions are private.

The changes are expected to affect Disney's businesses unevenly, with some divisions facing deeper cuts than others. The company operates theme parks, television networks, film studios and cruise ships.

Chief executive Josh D'Amaro intends to reinvest part of the savings in film and television programming, technology, theme parks and cruise operations, as the company seeks to strengthen its core businesses while reducing expenses.

The plans come as Disney pursues double-digit growth in adjusted earnings per share in the current financial year.

A Disney representative declined to comment on the proposed cuts, and the company has not disclosed how many positions could be eliminated or when the reductions might take place.

Disney employed approximately 231,000 people worldwide at the end of its previous financial year.

The company has already eliminated thousands of positions and reduced costs by billions of dollars in recent years, with layoffs affecting divisions including ABC, Pixar, ESPN, its film studio and theme park operations.

In 2023, Disney announced plans to eliminate 7,000 jobs as part of a restructuring programme aimed at reducing costs by $5.5 billion. Further reductions have followed across its businesses.

The Wall Street Journal reported on October 1 that Disney was preparing to restructure its television operations, alongside planned cuts to its legal and global affairs division.

Disney's latest cost-cutting plans come as traditional media companies grapple with declining television revenue, growing competition from streaming platforms and changing viewing habits.

Rivals including Netflix, Sony Pictures Entertainment and Skydance's Paramount and Warner Bros. businesses have also reduced their workforces as they seek to improve profitability.

The industry faces increasing competition from technology companies such as Amazon and Apple, whose streaming services compete for audiences and advertising revenue.

Social media and online video platforms have added to the pressure, attracting viewers who might previously have spent more time watching traditional television.

Speaking at the Bloomberg Screentime conference in Los Angeles in October, Disney president Dana Walden acknowledged the need for entertainment companies to reassess their organisational structures as technology reshapes the industry.

"There is a need to constantly evaluate how you're structured and how big is the organisation," Walden told the conference.

She stressed that Disney must adapt to technological changes to remain competitive and continue growing.