Disney plans fourth round of layoffs in 2026, targeting 20% expense cut
Disney CEO Josh D’Amaro announced a new wave of job cuts aimed at reducing annualized expenses by 20%, the largest layoff round this year, while pledging to reinvest savings in content and technology.
Disney is preparing its fourth round of layoffs in 2026, with managers instructed to cut annualized expenses by 20%, Bloomberg News reported. The cuts are expected to affect the largest number of employees under CEO Josh D’Amaro this year, though the report did not specify which divisions will be hit hardest. D’Amaro said the savings will be partially reinvested in film and TV programming, technology, and the company’s theme-park and cruise-ship businesses.
The company declined to comment on the plan. Earlier restructuring efforts have already eliminated hundreds of positions across Disney’s TV operations, corporate functions, Pixar, ESPN, and its studios. In April, about 1,000 roles were removed as part of a consolidated enterprise marketing division led by chief marketing and brand officer Asad Ayaz.
President and chief creative officer Dana Walden addressed the layoffs at a Bloomberg Screentime event, noting that “there is a need to constantly evaluate how you’re structured.” She also described the early-retirement buyout program offered to executives as “extremely generous,” giving long-tenured leaders the option to decide whether to stay or leave.
In an August 5 letter to shareholders, D’Amaro and CFO Hugh Johnston said the company remains focused on cost reduction to create capacity for growth, evaluating levers such as labor and SG&A reductions. Disney is slated to report its September quarter results, the fiscal 2026 fourth quarter, on November 17 before the market opens.