The Walt Disney Company (DIS) is planning to lay off up to 1,000 employees in the coming weeks under new CEO Josh D’Amaro. The entertainment giant seeks to cut costs as cord-cutting impacts its once-profitable linear TV business. Most cuts will target its recently consolidated marketing division. Disney employed about 230,000 people at fiscal 2025’s end.
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New trading tool for AMZN bullsRival Sony Pictures (SONY) announced hundreds of job cuts yesterday, blaming similar pressures. Hollywood grapples with a job crisis driven by slumping box office sales, cord-cutting, fading streaming profits, and viewer shifts toward platforms like Amazon Prime (AMZN) and Google’s YouTube (GOOGL).
DIS Stock Price Movement
Disney’s stock has dropped 12.8% year-to-date, closing at $99.18 yesterday, down from a January high of $115.88 amid broader market jitters. Layoff news exacerbated a post-earnings dip in February, as investors weigh streaming losses against parks recovery.
Disney Undergoes Major Restructuring
Disney has been undergoing a major restructuring even before D’Amaro succeeded Bob Iger as CEO. Under Iger’s lead, Disney laid off about 8,000 workers, mainly in its entertainment, ESPN and corporate operations, while theme parks and the cruise line have been resilient. These layoffs helped Disney save up to $7.5 billion in costs, much more than initially forecasted.
In January, Disney unified marketing across entertainment, experiences, and sports under a single CMO, Asad Ayaz. His cost-cutting initiative, reportedly codenamed Project Imagine, aims to speed up team collaboration. D’Amaro has not detailed plans yet, but insiders say top goal is getting teams to work together faster.
Is DIS a Good Stock to Buy Now?
Analysts remain optimistic about Disney’s long-term potential. On TipRanks, DIS has a Strong Buy consensus rating based on 18 Buys and three Hold ratings. The average Walt Disney price target of $132.11 implies 33.2% upside potential.
