Disney (DIS.US) plans to lay off thousands of employees! Some management are required to cut costs by up to 20%. The new CEO continues "slimming down" after taking office.

According to The Zhitong Finance APP, sources revealed that Disney (DIS.US) is planning to lay off thousands of employees as part of a new round of cost-cutting measures. Some managers have been instructed to reduce costs by as much as 20%. This will be another large-scale layoff implemented since CEO Josh D'Amaro took office earlier this year.

Sources indicated that Disney is assessing further options for cutting operational costs, with some departments facing cost reduction targets of up to 20%. However, the specific timeline and departments involved in this round of layoffs remain unclear.

This potential layoff plan continues the ongoing organizational streamlining and cost control measures that Disney has been advancing throughout this year. In April, Disney planned to cut up to 1,000 employees, mostly in the marketing department. Then, in September, the company announced another layoff of about 300 employees, many of whom were in the human resources and technology departments.

If the latest round of layoffs is implemented, it means Disney will be conducting several rounds of personnel adjustments in just a few months, further reflecting management's determination to control costs and improve operational efficiency.

In fact, Disney's management has previously stated clearly that further cost-cutting measures may be taken in the future. In the quarterly earnings report released in August, Disney executives informed investors that the company is pushing forward with a broader cost optimization plan. In a letter to shareholders on August 5, D'Amaro and CFO Hugh Johnston said: "We remain highly focused on company-wide cost reductions to free up more resources to support growth investments and are evaluating a variety of feasible measures."

The two also pointed out that related work is still ongoing and the company will provide timely updates to investors on progress in the future. In addition to layoffs, Disney is also reducing its workforce through early retirement programs.

In August of this year, Disney introduced early retirement plans for certain employees to further adjust its organizational structure.

Disney Chief Human Resources Officer Sonia Coleman stated in a letter to staff on August 24 that the early retirement plan is just one of several measures the company is taking to reshape its organizational structure. She noted: "This is only one of a series of actions we are taking to reshape our organization, including involuntary layoffs that have already begun in some business areas and will continue into next year."

This statement indicates that Disney had already planned to extend personnel streamlining measures through 2027. According to Disney's annual report for fiscal year 2025, as of the end of the fiscal year in September 2025, the company will have approximately 231,000 employees.

Based on this workforce size, laying off thousands of employees would have a significant impact on the company’s overall personnel structure. However, since the final scale of the latest layoff plan is still undetermined, it is difficult to assess its specific impact at present.

It is noteworthy that Disney is not the only entertainment industry giant recently engaged in large-scale cost reductions. As competition in the industry intensifies, many major entertainment companies are controlling operational expenses through layoffs and organizational restructuring.

Netflix (NFLX.US) indicated in an internal memo last month that it plans to lay off about 6% of its staff. At the same time, Skydance (SKYD.US), formed by the merger of Paramount and Warner Bros. Discovery, is also expected to implement layoffs to achieve its target of $6 billion in cost synergies over the next three years.

This series of layoff plans shows that amid continued financial pressure from content production, streaming competition, and business integration, the entertainment industry is further strengthening cost management to improve profitability and free up investment space for future growth.

For Disney, the new round of layoffs will also be an important indicator to observe D'Amaro’s operational strategy since taking office. The company is striving to strike a balance between cost control and supporting long-term business growth, and whether these personnel adjustments can effectively improve profitability will be closely watched by investors.

Disney plans to announce its fiscal fourth quarter 2026 results on November 17. At that time, investors will be closely monitoring the latest progress of the company's cost reduction plans, as well as whether management will disclose more details on the scale of layoffs, cost savings, and future operational strategy.