Disney is reportedly aiming to achieve a 20% reduction in its annual expenses, a goal set for its management. To meet this target, the company is preparing to let go of thousands of employees, according to information from Bloomberg.
Areas of Impact and Future Investments
The cost-cutting measures are planned through both workforce reductions and the scaling back of other expenditures, although the specific areas targeted for cuts remain unclear. Sources suggest that the optimization will affect some divisions more significantly than others.
Despite the cuts, Disney's CEO, Josh D'Amaro, intends to reinvest a portion of the saved funds. These funds are earmarked for developing film and television content, technology, theme parks, and the cruise business.
Historical Context of Cost Reduction
Over recent years, Disney has already reduced costs by billions of dollars and eliminated thousands of positions. The layoffs have impacted multiple areas, including the ABC television channel, the ESPN cable network, the Pixar studio, and other entertainment project departments.
Furthermore, reports indicate that competitors like Netflix, Sony Pictures, and divisions of Paramount and Warner Bros. are also reducing staff amid declining revenue from traditional television and slowing growth in streaming subscriptions.
Industry Overview
The company previously projected double-digit revenue growth rates for 2026. As of the end of the last fiscal year, Disney employed approximately 231 thousand people.
