Disney is laying off approximately 300 employees. The layoffs primarily affect human resources and technology departments, impacting corporate offices and various divisions within the company.

This action marks the latest step in a cost-cutting strategy overseen by CEO Josh D'Amaro and CFO Hugh Johnston. The job cuts follow two previous rounds of reductions earlier in the year.

In April 2026, Disney eliminated approximately 1,000 roles across its film, television, ESPN, technology, and consumer products divisions. The April layoffs were primarily due to the formation of a consolidated enterprise marketing division led by chief marketing and brand officer Asad Ayaz.

In August 2026, Disney offered early-retirement buyout packages to longtime executives. This voluntary measure provided an alternative to involuntary separations for senior staff members meeting specific tenure and age criteria.

Leadership addressed the financial strategy in an August 5, 2026, letter to shareholders. "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," D'Amaro and Johnston wrote. They added, "We are mid-stream in this work and will provide future updates on our progress."

Why It Matters

The series of workforce reductions reflects a broader strategy to reduce labor and SG&A expenses, as stated in the company’s August 5, 2026, letter to shareholders. These initiatives include the Voluntary Early Retirement Offer (VERO) program, which requires executives to meet a 65-point threshold based on age and years of service, with a minimum age of 50 and 10 years of service for eligibility. The program offers up to one year of separation pay and healthcare benefits to eligible participants.

Disney previously conducted a global workforce reduction of 4,000 jobs in March 2001, combining voluntary buyouts and layoffs, and offered voluntary buyout packages to over 600 executives at its U.S. theme parks unit in 2009. These historical actions establish a precedent for similar cost-cutting strategies during periods of organizational restructuring.

Timeline

As of September 2025, Disney reported having approximately 231,000 full- and part-time employees. In April 2026, Disney eliminated approximately 1,000 roles, primarily due to the formation of a consolidated enterprise marketing division. For the quarter ended June 27, 2026, Disney reported a 7% year-over-year increase in total revenues to $25.25 billion. In July 2026, Disney eliminated several hundred jobs across corporate functions including Pixar, ESPN, Disney Entertainment Television, and Disney studios, with the majority of studio layoffs at Pixar and the majority of TV group layoffs at National Geographic.

What's New

D’Amaro and Disney CFO Hugh Johnston noted that the company was mid-stream in its cost-cutting efforts, with a focus on reducing labor and SG&A expenses. Disney reported a 7% year-over-year increase in total revenues to $25.25 billion for the quarter ended June 27, 2026. Disney’s cost-cutting initiatives, including the VERO program, are part of a broader strategy to reduce labor and SG&A expenses, as stated in the company’s August 5, 2026, letter to shareholders.

In April 2026, Disney cut approximately 1,000 jobs across its film, television, ESPN, technology, and consumer products divisions. Disney’s third-quarter 2026 earnings report reiterated its focus on reducing labor and SG&A costs, stating it is 'mid-stream' in cost-cutting initiatives with planned future updates. Historically, Disney previously conducted a global workforce reduction of 4,000 jobs in March 2001, combining voluntary buyouts and layoffs, and offered voluntary buyout packages to over 600 executives at its U.S. theme parks unit in 2009.

How Sources Differ

Sources differ on the details of the voluntary retirement program. The primary source and Disney offered early-retirement buyout packages to longtime executives in August 2026. Sec.gov states that Disney’s Voluntary Early Retirement Opportunity (VERO) program requires eligible executives to meet a 65-point threshold (age + years of service), with a minimum age of 50 and 10 years at the company, offering up to one year of separation pay.