Walt Disney Co. is reportedly pursuing significant cost reductions, with managers instructed to target 20% annual savings. The cuts may include job eliminations and expense reductions across its operations, including theme parks, TV channels, and the movie studio. Chief Executive Officer Josh D’Amaro plans to reinvest a portion of the savings into film and TV programming, technology, and the theme parks and cruise ship businesses.
Disney has already cut billions of dollars worth of costs and eliminated thousands of positions in recent years. The company has promised double-digit growth in adjusted earnings per share in the current fiscal year. Industry peers like Netflix, Sony, and Warner Bros. are also reducing staff due to declining traditional TV revenue and shifting consumer habits toward streaming and social media.
Disney’s global workforce stood at 231,000 at the end of the last fiscal year. The move involves addressing declining revenue from traditional TV and slow growth in online streaming, while industry-wide financial pressures continue to impact entertainment giants.
are also reducing staff due to declining traditional TV revenue and shifting consumer habits toward streaming and social media.