Disney is preparing to lay off several thousand employees as part of a broader effort to reduce costs, sources familiar with the plan told CNBC. Some managers within the company have been instructed to cut budgets by as much as 20%. These moves represent the latest wave of workforce reductions initiated after Josh D’Amaro took over as CEO earlier this year, following smaller rounds of layoffs in marketing, human resources, and technology departments.

Earlier this year, Disney planned layoffs affecting up to 1,000 workers, mainly in marketing, and in September announced cuts of roughly 300 jobs in HR and tech roles. In August, Disney also launched an early retirement program as part of its strategy to reshape the organization. Chief People Officer Sonia Coleman confirmed that involuntary staff reductions have commenced in some areas and will continue into 2027.

Disney employed approximately 231,000 people at the end of its fiscal 2025 year in September. The company’s leadership has emphasized ongoing cost reduction measures, aimed at freeing up resources for future growth investments. CEO Josh D’Amaro and CFO Hugh Johnston outlined in a shareholder letter in August that Disney remains committed to exploring various options for expense management as part of this process.

Disney is not alone in tightening its workforce; other entertainment giants are also cutting jobs to manage expenses. Netflix recently announced plans to reduce its workforce by about 6%. Meanwhile, the newly merged Skydance, formed from Paramount and Warner Bros. Discovery, is preparing staff reductions as it seeks to achieve $6 billion in synergies over three years. Disney is scheduled to report its fiscal Q4 earnings on November 17.