Disney Signals That More Layoffs Are Likely On The Way
Disney saw layoffs as recently as last month.
Disney has seen more than its share of layoffs in the last couple years, including a significant number just recently. Unfortunately, it doesn't look like the layoffs are quite done at the Walt Disney Company.
What's Happening:
- Disney released it's third quarter report for the 2026 fiscal year this morning.
- While the financial numbers are mostly positive, with revenue and operating income on the rise, the report does indicate continued plans to reduce the company's costs, and layoffs are specifically mentioned as one way it may achieve the cost cutting.
- The report reads: "We remain highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers, including reductions in labor and SG&A. We are mid-stream in this work and will provide future updates on our progress."
- The fact that TWDC says it's "mid-stream" in its cost cutting initiatives indicates we are likely to still see significant changes to operations within the company, and while it says layoffs are only one potential "lever" to achieve cost reductions, it's a lever Disney is clearly willing to pull.
- Disney has been in a phase of cast member for sometime. We have already seen two significant rounds of layoffs this year alone.
- A massive layoff that focused on Disney's marketing company wide hit in April.
- A round focused on the Entertainment division, which reportedly hit Pixar hard, took place last month.
More Disney Business News:
- These recent layoffs all follow from an even larger one in 2023 that was so large observers called it a "bloodbath."
- Disney is making a major internal move, shifting its Consumer Products division from its Experiences division to the Entertainment side.
- For a look at everything discussed during the recent earnings call, check out our live blog.