Disney’s 20% Savings Drive Lands Like a Bear Market on Managers 🎢

Disney layoffs could reach the thousands, with some managers reportedly asked to target 20% in annual cost savings, according to Bloomberg. CEO Josh D’Amaro plans to reinvest part of the savings in content, parks, cruises, and technology, while the amount reinvested could affect how much Disney shareholders see in earnings.

The plan follows a year of targeted reductions across the entertainment company. Disney eliminated about 1,000 positions in April and several hundred more in July, then laid off a few hundred workers in human resources and technology in September. Separately, The Wall Street Journal reported on October 1 that Disney planned to restructure its TV division. Bloomberg, citing people familiar with the matter, said the savings could include expense cuts, with some divisions affected more heavily than others.

Disney had about 231,000 employees at the end of fiscal 2025. Reuters identified artificial intelligence (AI), a weaker box office, streaming rivals, and slower international park attendance as pressures, with AI driving job cuts across industries in 2026. The company’s savings target is also tied to a profit promise: in its August shareholder letter, Disney reaffirmed double-digit growth in adjusted earnings per share (EPS) for fiscal 2027, measured without the extra 53rd week in fiscal 2026.

DIS stock has recovered from its summer lows. In late July, shares traded about 18% below where they started in 2026, according to TradingView data, before jumping nearly 5% in premarket trading in August after quarterly results beat estimates. The rally brought the stock to within about 2% of its starting level by late August, but it faded through September and was roughly 10% below that level by early October. Shares recovered through most of October, closing at $113.11 on November 2, up 1.96% on the day and about 0.58% below where they started the year.

Disney’s fiscal fourth-quarter earnings are expected before the market opens on November 17. Analysts expect $1.68 per share, up 51.4% from $1.11 a year earlier, according to Barchart. A dollar figure for the savings and updated fiscal 2027 guidance would provide further clarity on the restructuring plan.