The Disney Company is preparing to lay off thousands of employees as it seeks a 20 percent annual cost savings. CEO Josh D'Amaro is facing financial challenges including the growth of AI, declining box office revenue, and competition from other streaming services.

Here's more:

Some Disney operations are expected to bear a larger share of the cuts than others and D'Amaro aims to reinvest part of the savings into film and TV programming, technology, theme parks and cruise ship businesses, the report said.

Disney did not immediately respond to a Reuters request for comment outside regular business hours.

The report did not specify how many jobs could be affected. Disney ‌employed ⁠about 231,000 people at the end of fiscal 2025.

The entertainment giant has been cutting jobs in recent years as part of broader efforts to improve profitability.

Reuters reported in September that Disney was laying off a few hundred employees ⁠across its human resources and technology divisions.

The company had previously cut about 1,000 positions in April, several hundred jobs in 2025, and 7,000 roles in 2023 as ⁠part of its efforts to save $5.5 billion in costs under former CEO Bob Iger.

Disney, which owns beloved IPs like "Star Wars" and the Marvel Cinematic Universe, has struggled with box office flops.

The woke messaging in some of the movies, coupled with an undermining of characters like Luke Skywalker and Han Solo has not helped endear audiences to Disney.

D'Amaro became Disney CEO back in March, succeeding longtime CEO Bob Iger.

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