Walt Disney is considering cutting thousands of jobs and has asked some managers to target 20 percent in annual cost savings, Bloomberg News reported, citing people familiar with the matter. Because the discussions are private, the savings could come from job eliminations as well as from reductions in other expenses, according to Bloomberg’s sources, who asked not to be identified. The reported restructuring effort comes as Disney navigates multiple challenges, including the growing use of artificial intelligence, weaker box-office performance, intensifying competition from streaming rivals and a slowdown in international attendance at the company’s theme parks.
Disney has directed some managers to target annual cost reductions of 20%, according to the report. The company had already announced major job reductions in April and July, followed by early-retirement offers to some longtime executives in August. The savings could come from a combination of job cuts and other expense reductions across the business. The report added that not all parts of the company will be affected equally. Some Disney operations are expected to shoulder a larger share of the cuts than others as the company reviews spending across its businesses. The layoffs come after Disney warned shareholders in August that it was looking at more ways to reduce costs, including possible cuts to its workforce.