Disney Weighs Thousands of Job Cuts as Managers Target 20% Savings

Disney is considering thousands of job cuts and has asked some managers to target 20% in annual cost savings as it seeks to free resources for growth investments.

Disney has not disclosed a final number of positions, a timetable or which divisions could be affected. The company declined to comment.

In its Aug. 5 fiscal third-quarter results, Disney said a companywide cost-reduction effort covering labor and selling, general and administrative expenses was halfway complete. The effort was intended to make more resources available for growth investments, and Disney said it would provide an update later.

Disney posted $25.2 billion in revenue for the quarter, up 7% year over year, and adjusted earnings of $2.06 per share, up 28%. Experiences operating income, which includes theme parks and cruises, rose 20% year over year to $3.02 billion. About four percentage points of that increase came from roughly $100 million in tariff refunds.