The Walt Disney Company has instructed certain managers to slash annual costs by as much as 20% as part of a multi-billion dollar belt-tightening effort, Bloomberg reported, citing sources familiar with the private discussions.
The sweeping cost cuts target divisions across the entertainment conglomerate, though the impact will not be distributed evenly across theme parks, television channels, and film studios. According to individuals who spoke on the condition of anonymity, the savings will combine direct headcount reductions with general expense trims.
Disney Channels Freed Capital into Core Growth Areas
Josh Damaros plans to channel a portion of the newly freed capital back into core growth areas, including film and television content, technology, theme parks, and cruise line operations. Disney leadership has repeatedly promised investors a double-digit percentage increase in adjusted earnings per share for the current fiscal year, fueling pressure on executives to rein in operational overhead.
Disney declined to comment on the internal reduction targets. The company finished the last fiscal year with a global workforce of 231,000 employees. Over recent years, leadership has eliminated thousands of jobs and carved out billions in expenses across nearly every operating segment, including ABC, Pixar, ESPN, film studios, and the parks and experiences division.
Media Companies Face Financial Strain as Traditional Revenues Decline
Competitors including Netflix, Sony Pictures Entertainment, and Paramount—acquired by Skydance—alongside Warner Bros., have likewise downsized their workforces.
Media companies face mounting financial strain as traditional television revenues decline and subscriber growth across streaming platforms slows. Audiences continue to migrate toward social media and short-form online video, while traditional studios contend with deep-pocketed tech giants such as Amazon and Apple supporting rival streaming operations.
Dana Walden addressed the shifting television competition last month at the Bloomberg Screentime conference in Los Angeles. “We need to constantly examine the structure and the size of our organization,” Walden said. “Tech companies have targeted our business, and we need to survive and grow. And we will do that.”
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