Disney plans additional layoffs as divisions target up to 20% cost cuts

Disney is preparing a new wave of layoffs that could affect thousands of employees across multiple divisions, including its television networks and film studio. Sources say managers of the impacted teams have been given cost-saving targets, with some asked to achieve as much as 20% in annual expenses.

The company did not comment on the planned cuts, which were first reported by Bloomberg. The timing of the reductions has not been disclosed.

Layoffs have been ongoing since Josh D’Amaro became CEO in March, following the departure of Bob Iger. In April, about 1,000 positions were eliminated, and several hundred more were cut in July, with Pixar and National Geographic among the affected units. In August, Disney offered a Voluntary Early Retirement Offer to senior executives, a move that was described as a precursor to further reductions. The offer was taken up by more managers than expected.

"This is one of several actions we’re taking to reshape our organization, including involuntary staff reductions that have already begun in some areas and will continue into next year," wrote Disney EVP and Chief People Officer Sonia Coleman in an August memo.

Subsequent rounds saw a few hundred employees let go in late September, primarily in technology and human resources, and another 100-200 staff in the Experiences division were dismissed last week, most of them at the Imagineering campus in Glendale.

"I think like all of our similarly situated competitors, and certainly all of our competitors in the tech industry, there is a need to constantly evaluate how you’re structured," said Dana Walden, President and Chief Creative Officer, at a Bloomberg conference. "Technology set their sights on our business, and we must survive and thrive and grow. That’s what we’re going to do."

D’Amaro has emphasized cost reductions since taking the helm. At the latest earnings call, he said the savings would be redirected to growth initiatives.

"When our teams work smarter, we can serve more people across our parks and digital platforms and do it more cost-effectively. That frees up capital to reinvest aggressively in what drives long-term value: new content and next-generation guest experiences, as well as technology infrastructure that keeps Disney at the forefront of entertainment," he said.

Disney’s global workforce stood at just over 230,000 employees at the end of the most recent fiscal year.