Disney plans thousands of job cuts, managers given a target of 20% savings — The Japan Times

Walt Disney Co. is preparing to cut thousands of jobs and has asked some managers to target a 20% reduction in annual costs. The Japan Times reported this, citing people familiar with the private discussions.

Cutbacks in specific divisions

According to the publication’s sources, the savings could be achieved both through eliminating jobs and reducing other expenses. The changes will disproportionately affect certain Disney businesses, including theme parks, the television network and the film studio.

Disney CEO Josh D’Amaro, according to the sources, plans to reinvest part of the savings in film and television production, technology, theme parks and the cruise business. The company has also promised double-digit growth in adjusted earnings per share in the current fiscal year. A Disney representative declined to comment.

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Previous layoffs

Disney has already cut costs by billions of dollars and eliminated thousands of positions in recent years. The cuts affected all divisions, including ABC, Pixar, ESPN, the film studio and the Experiences business. At the end of the previous fiscal year, the company employed 231,000 people worldwide.

On October 1, The Wall Street Journal reported that Disney was planning a restructuring of its television division, as well as cuts in its legal and global affairs units. Netflix, Sony Pictures Entertainment, Paramount and Warner Bros. have also reduced staff amid declining revenue from traditional television and slower growth in the number of streaming-service subscribers.