Walt Disney Co. is implementing a significant cost reduction strategy, with management asking some executives to target 20% in annual cost savings across the company. According to reports from Bloomberg, these savings could come from both job eliminations and expense reductions, with the company aiming to reinvest a portion of the savings into film and TV programming, technology, and theme parks and cruise ship businesses. The impact will vary across Disney's diverse operations, which range from theme parks to TV networks and movie studios. CEO Josh D'Amaro plans to reinvest part of the savings into film and television production, technology, and the theme parks and cruise businesses as part of the company's strategic reinvestment strategy. The company has promised double-digit growth in adjusted earnings per share for the current fiscal year.
Disney has already begun implementing its cost reduction strategy with several recent workforce reductions. As reported by Deadline, the company laid off between 100 and 200 Experiences employees on October 28, with most cuts occurring at its Imagineering campus in Glendale. The division includes theme parks, resorts and cruise lines. These cuts follow a voluntary early retirement offer for employees at director level or above who are at least 50 and have worked at Disney for 10 years or more. Disney has also eliminated 1,000 positions in April, followed by several hundred in July mainly at Pixar and National Geographic, with September cuts affecting technology and human resources staff. The company is reportedly planning to launch a new round of workforce reductions that could reach several thousand positions, with the figures not yet independently verified.
CEO Josh D'Amaro is positioning the cost reduction as part of Disney's strategic reinvestment strategy. According to Bloomberg, the company has promised double-digit growth in adjusted earnings per share for the current fiscal year. The savings will be directed toward film and TV programming, technology infrastructure, and theme parks and cruise ship businesses to support growth initiatives. Disney has previously eliminated thousands of positions across every division, including ABC, Pixar, ESPN, the film studio, and the experiences unit. The veteran entertainment group is squeezing operating expenses on one hand while shifting resources toward content production and experience businesses such as parks and cruises on the other, reflecting management's continued effort to adjust its cost structure and investment priorities as its streaming and traditional television businesses come under pressure.
Disney employed 231,000 people at the end of its 2025 financial year, including 172,000 in the United States and 59,000 elsewhere. Part-time staff accounted for 16% of its workforce and seasonal employees for 8%. The company's Experiences division reported strong performance with a 20% rise in profit to more than $3 billion on revenue of almost $10 billion. Global guest numbers increased 4%, while attendance at domestic parks rose 3%, with average ticket revenue per visitor increasing 5%.
Disney's restructuring reflects broader challenges facing the entertainment industry as traditional revenue streams decline. As reported by multiple sources, other entertainment companies including Netflix Inc., Sony Pictures Entertainment, Skydance Corp.'s Paramount, and Warner Bros. divisions have also implemented job cuts due to declining traditional television revenue and slowing streaming subscriber growth. The company must also compete with viewers shifting to social media, online videos, and streaming services backed by tech giants like Amazon.com Inc. and Apple Inc. The veteran entertainment group is squeezing operating expenses on one hand while shifting resources toward content production and experience businesses such as parks and cruises on the other, as its streaming and traditional television businesses come under pressure.
