DIS Stock Ticks Higher Overnight: Disney Reportedly Weighs Thousands Of Job Cuts In Fresh Cost-Cutting Push Under Josh D’Amaro

Disney is considering thousands of job cuts as CEO Josh D’Amaro pushes for lower costs.

• Disney to slash thousands of jobs, asking managers to find up to 20% in cost savings. 
• CEO Josh D’Amaro plans to redirect some savings toward movies, technology, and theme parks. 
• Disney has already cut thousands of jobs this year across multiple divisions. 

Walt Disney CO. (DIS) stock edged higher overnight after reports emerged that the entertainment giant is considering thousands of job cuts as part of a broader cost-reduction effort amid CEO Josh D’Amaro’s aim to spur growth. 

Walt Disney stock edged up 0.08% overnight, ahead of Monday. The stock has recorded seven monthly losses so far this year. 

Walt Disney’s Potential Job Cuts And Cost Savings

According to a Bloomberg report, Walt Disney is considering another major round of layoffs as it looks for ways to lower expenses and redirect money toward key growth areas. Managers have been asked to identify opportunities to reduce their annual operating costs by as much as 20%, potentially putting thousands of positions at risk.

The proposed savings could involve eliminating positions, reducing operating expenses or combining both approaches. Disney's theme park operations, television networks and film production business could face larger workforce reductions than other divisions.

According to the report, D'Amaro wants to channel some of the money saved back into areas considered important for future growth, including movie and television content, technology investments, theme parks and cruise operations.

Disney's Latest Layoffs Follow Multiple Job Cuts This Year 

The latest layoff plan follows Disney's few hundred job cuts in September across human resources and IT teams. When Disney reported its third-quarter results in August, D'Amaro said the company wanted to free up more money for growth and was looking at different ways to reduce costs, suggesting further layoffs could follow.

In April, Disney eliminated about 1,000 positions across marketing, movie studios, television, ESPN, products, technology and corporate teams. The company also axed several hundred more jobs in July. 

Disney is not alone in reviewing its staffing needs. Other major entertainment businesses, including Netflix Inc. (NFLX) and Warner Bros. Discovery Inc. (WBD), have also pursued job cuts as the industry adjusts to changing viewing habits.

Disney will report its Q4 earnings on Nov. 17, with analysts expecting $25.1 billion in revenue and earnings of $1.69 per share, according to Fiscal.ai. 

DIS Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained ‘bearish’. 

DIS stock has slipped 0.6% year-to-date. 

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