Walt Disney Co. is reportedly weighing a fresh round of significant workforce reductions as part of a sweeping cost-cutting initiative, with some managers reportedly asked to identify annual savings of up to 20% within their respective units, according to multiple reports. The move signals that the entertainment giant's restructuring drive is far from over, even as new chief executive Josh D'Amaro attempts to steer the company through a rapidly shifting media landscape.

What Is Driving the Cuts

D'Amaro faces a formidable set of headwinds. These include the accelerating adoption of artificial intelligence (AI) across the broader entertainment industry, softer box office returns, intensifying competition in the global streaming market, and sluggish attendance growth at Disney's international theme parks. The proposed restructuring is not expected to affect all business divisions equally — certain operations are likely to absorb a disproportionately larger share of the reductions, according to reports.

Notably, a portion of the savings generated is expected to be reinvested into strategic priority areas, including film and television content, technology infrastructure, theme park operations, and the company's rapidly growing cruise business.

Scale of the Potential Layoffs

Reports have not specified the precise number of positions at risk. Disney employed approximately 231,000 people at the close of fiscal year 2025. The company did not immediately respond to requests for comment, according to reports.

This comes amid a well-documented pattern of workforce reductions at Disney in recent years. In September 2025, the company cut several hundred positions across its human resources and technology divisions. Before that, approximately 1,000 jobs were reportedly eliminated in April 2025. These efforts trace back to a major restructuring launched under former Chief Executive Officer Bob Iger, which targeted the elimination of roughly 7,000 roles and aimed for $5.5 billion in total savings.

Industry-Wide Trend

Disney's situation is not isolated. The wider media and entertainment sector has seen a wave of workforce reductions as companies recalibrate for a streaming-first world. Netflix and Skydance — which acquired Warner Bros. Discovery earlier this year — have both implemented job cuts as they manage costs and adapt to structural shifts in content consumption and distribution.

Separately, US tech giant Amazon has reportedly laid off around 250 employees in its devices and services division, as the company moves to align staffing with evolving product priorities. Affected employees were informed through early-morning emails and text messages, according to reports.

What Happens Next

With Disney yet to formally confirm the scope of the planned reductions, analysts and employees alike are watching for an official statement from the company's leadership. The outcome will likely depend on how aggressively D'Amaro moves to balance cost discipline against the creative investment needed to compete in an increasingly AI-driven, streaming-dominated entertainment economy.