The entertainment industry has undergone a significant transformation as streaming platforms increasingly compete with traditional television networks and movie studios for viewers.
But the shift has also come at a cost to employees. Major entertainment companies continue to eliminate positions as they invest in new programming, technology, and digital services.
A primary reason has been overlapping roles, the difficult decision to save where possible, or, in some cases, simply making way for artificial intelligence infrastructure.
Netflix became the latest major example in October, eliminating approximately 1,000 jobs, or 6% of its global workforce, in its biggest round of layoffs since 2022, as TheStreet reported.
Meanwhile, newly merged entertainment giant Skydance, which now includes Paramount and Warner Bros. Discovery, has introduced voluntary buyouts for eligible employees while pursuing billions of dollars in savings.
The industry-wide changes reflect a broader shift in how Americans consume entertainment.
According to Pew Research Center, 83% of U.S. adults watch streaming services, compared with just 36% who subscribe to cable or satellite television at home.
The Walt Disney Company has been navigating many of the same challenges, eliminating more than 1,500 jobs across several rounds of layoffs this year.
Now, the entertainment giant is reportedly preparing for another round of workforce reductions that could affect thousands more employees.
Disney plans another major round of job cuts
Disney has asked some managers to identify opportunities to reduce annual costs by up to 20%, according to a Bloomberg report citing people familiar with the matter.
These cost reductions could come through layoffs or cuts to other operating expenses, with some divisions expected to face greater pressure than others. Disney’s television networks, film studios, and theme park operations could be among the businesses affected.
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CEO Josh D’Amaro reportedly intends to reinvest some of the savings into film and television programming, technology, theme parks, and the company’s expanding cruise operations.
Deadline separately reported that managers across several divisions have received different savings targets, with some reaching 20%. Disney declined to comment.
The company has not confirmed how many positions could be eliminated or when the reductions might occur. The 20% figure represents a reported cost-saving target for certain managers, not a companywide workforce reduction.
However, Disney had already indicated that additional labor reductions were under consideration. In its Aug. 5 shareholder letter, Disney management said it was evaluating further cost savings, including reductions in labor and selling, general, and administrative expenses.
“We are mid-stream in this work and will provide future updates on our progress,” the company said.
Disney asks managers to reduce annual costs by up to 20%.blanscape / Getty Images
Timeline of Disney’s layoffs in 2026
The potential reductions follow months of workforce restructuring under Josh D’Amaro, who succeeded Bob Iger as CEO in March.
Disney has already announced or carried out several rounds of job cuts:
April: Disney moved to eliminate approximately 1,000 positions, primarily in marketing, although the cuts also affected its studios, television, ESPN, consumer products, technology, and corporate functions, as TheStreet reported.
July: Several hundred more positions were affected across Pixar, ESPN, Disney Entertainment Television, National Geographic, and other operations, TheStreet noted.
September: Disney began eliminating roughly 300 jobs, primarily in human resources and technology. Separately, the company was considering a television restructuring that could put hundreds of additional jobs at risk, as TheStreet reported.
October: Disney’s Experiences division, which oversees its theme parks, resorts, and cruise operations, eliminated between 100 and 200 positions, with many of the cuts concentrated at Walt Disney Imagineering in Glendale, California, according to Deadline.
A California WARN filing dated Oct. 27 identifies 159 permanent layoffs at Walt Disney Parks & Resorts’ Glendale location, effective Dec. 29. Those positions may overlap with the broader October layoffs at Disney Experiences.
Disney also offered voluntary early-retirement packages to certain experienced employees in August as part of its ongoing restructuring efforts, according to Deadline.
These reductions follow a much larger workforce overhaul in 2023, when Disney announced plans to eliminate approximately 7,000 jobs under Iger as part of a strategy to save $5.5 billion.
For Disney, the challenge is to balance cost-cutting efforts with its ambitions to expand its entertainment offerings. The company has continued to invest in streaming, theatrical releases, theme park attractions, and cruise ships, even as it reduces staffing across other parts of the business.
It employed approximately 231,000 workers globally at the end of fiscal 2025.
Disney is scheduled to release its fiscal fourth-quarter and full-year results on Nov. 17, when management could provide more information about the scope of its latest restructuring plans.
Related: Amazon cuts more jobs as CEO touts record margins, retail gains