The planned workforce reductions mark a continuation of leadership's cost-cutting efforts following D'Amaro taking the helm earlier this year. Company leaders previously laid out intentions to trim up to 1,000 primarily marketing roles in April alongside around 300 human resources and technology positions in September. Disney also rolled out an early retirement program in August as executives evaluated options to lower corporate expenses. These broad cutbacks arrive just ahead of the company's scheduled fiscal fourth-quarter earnings release on November 17.
Key points
Enterprise expenses are being lowered across Disney under the leadership of Chief Executi…: Enterprise expenses are being lowered across Disney under the leadership of Chief Executive Officer Josh D'Amaro.
Downsizing pressures are impacting the wider industry as competitor Netflix plans to cut…: Downsizing pressures are impacting the wider industry as competitor Netflix plans to cut roughly 6 percent of staff.
Detailed updates on business performance are expected when Disney reports fourth-quarter…: Detailed updates on business performance are expected when Disney reports fourth-quarter fiscal earnings on November 17.
Sources checked by our analysis pipeline: 1
Disney is planning to cut several thousand jobs, people familiar with the matter told CNBC.
Some managers at the entertainment giant have been asked to reduce costs by up to 20%, according to the people, who asked not to be named because they were not authorized to speak publicly.
It marks the latest round of layoffs since CEO Josh D'Amaro took the reins earlier this year. The update comes after separate plans in April to cut as many as 1,000 employees, predominantly in the marketing department, and in September to cut about 300 employees, many in human resources and technology divisions.
Bloomberg was first to report the latest round of layoffs.
Company executives warned of the possibility of more reductions in its August earnings report.
"We remain highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers," D'Amaro and CFO Hugh Johnston wrote in an Aug. 5 letter to shareholders. "We are mid-stream in this work and will provide future updates on our progress."
Financial analysts are projecting prolonged constraints within the semiconductor sector that will stretch out over the coming years. This expected deficit signals persistent operational hurdles for enterprise buyers seeking essential components. The supply-demand imbalance underscores structural challenges facing manufacturers as they try to keep pace with market needs.
The credit agency raised the company's status after evaluating strong momentum across expanding tech operations. This assessment reflects growing business strength specifically within artificial intelligence and cloud sectors. Consequently, the telecommunications firm now secures an investment-grade position to support its market standing.
The unexpected surge in available positions across government, business services, and manufacturing indicates resilient employer demand despite broader economic uncertainties. Concurrently, falling layoffs and an increase in worker resignations suggest labor force confidence is rebounding from earlier lows. This widespread stabilization sets a firm backdrop for upcoming official employment data, which investors are monitoring closely for growth trends.