Disney Plans Thousands Of Jobs Cuts In Bid To Achieve 20% Annual Cost Savings: Report

Walt Disney is preparing for potentially thousands of job cuts as the entertainment company intensifies efforts to reduce operating expenses and improve profitability, Bloomberg reported, citing sources.

As per the report, some managers have reportedly been asked to identify opportunities to achieve annual cost savings of 20%, although the reductions could involve both workforce cuts and lower operational expenditure.

The proposed measures are expected to affect certain divisions more significantly than others.

Chief Executive Officer (CEO) Josh D'Amaro reportedly plans to redirect part of the savings towards film and television programming, technology, theme parks and cruise operations.

Disney operates across entertainment, broadcasting, film production and leisure businesses.

The company has projected double-digit growth in adjusted earnings per share during the current financial year.

Disney has already undertaken extensive restructuring in recent years, eliminating thousands of jobs and reducing expenditure by billions of dollars.

Previous reductions affected several major businesses, including ABC, Pixar, ESPN, its film studio and experiences division.

At the end of its previous financial year, Disney employed approximately 231,000 people worldwide.

The Wall Street Journal reported on Oct 1 that the company was considering restructuring its television division, alongside workforce reductions in its legal and global affairs operations.

Disney's latest cost-cutting plans come as entertainment companies confront changing viewing habits and mounting competition from digital platforms.

Traditional television revenue has weakened, while growth in streaming subscriptions has slowed.

Companies including Netflix, Sony Pictures Entertainment and divisions of Paramount and Warner Bros have also reduced staffing amid industry pressures.

Entertainment businesses face increasing competition from social media, online video platforms and streaming services operated by technology companies such as Amazon and Apple.

Speaking at Bloomberg's Screentime conference in Los Angeles last month, Disney President Dana Walden highlighted the need to regularly assess organisational structures and staffing levels.

She said technological competition required entertainment companies to adapt to remain competitive and sustain growth.

The reported restructuring reflects Disney's efforts to balance cost discipline with continued investment in content, technology and its consumer-facing businesses.