Disney cuts costs: What’s going wrong with its business?

Layoffs have become constant

The latest round of job cuts is part of the restructuring D’Amaro began after taking over as CEO in March. This time, Disney is cutting around 300 jobs, mainly in HR and technology.

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In April, the company was already planning to eliminate up to 1,000 jobs as part of a reorganization of its marketing division. In July, several hundred more employees were cut across ESPN, Disney Entertainment Television and other studios. Most of those layoffs affected Pixar and National Geographic.

In August, Disney warned investors that it was still looking for ways to save money. The company specifically pointed to labor and administrative costs, while some longtime executives were offered early-retirement packages.

Strong numbers have not restored confidence

At first glance, Disney does not appear to have problems with its main sources of revenue. In the latest quarter, the company’s revenue rose 7%, while parks and cruises were once again among the main growth drivers.

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Revenue in the Experiences segment increased 10%. Attendance at Disney’s U.S. parks rose 3%, while spending per visitor increased 4%.

Streaming also continued to grow. Disney+ and Hulu increased revenue by 11%, while “Toy Story 5” grossed more than $1 billion worldwide. ESPN also posted growth.

The picture is much weaker on the stock market. Disney shares have lost around 39% over the past five years and remain down roughly 7% since the start of 2026. After falling in the spring, the stock partially recovered and climbed above $110 during the summer, but failed to hold those levels. As a result, the market still values Disney well below where it did five years ago.

An attempt to rebuild the business

D’Amaro is betting on the One Disney strategy. The idea is to connect movies, series, Disney+, Hulu, ESPN, parks, games and consumer products more closely, so the same franchise can generate revenue across several businesses at once.

For example, starting in fiscal 2027, the consumer products business will move from Experiences to Entertainment. That will put franchise creation and the sale of products based on those franchises within the same division.

Streaming is another major focus. D’Amaro has called Disney+ the “digital centerpiece of the company,” while Disney continues to integrate the service with Hulu. At the same time, the company is investing in parks and new projects, including a resort in Abu Dhabi.

All of this is happening alongside layoffs and a simpler corporate structure. Disney is removing overlapping functions and freeing up money for new investments. This is already the company’s second attempt to establish a new leadership structure after Bob Iger stepped down. Bob Chapek replaced him in 2020, but was fired a little more than two years later, with Iger returning as CEO.

What needs to work

Disney does not need to be rescued from financial collapse. It still has strong theme parks, profitable streaming, major franchises and ESPN. The problem is that investors still do not see how all these assets will once again translate into sustainable growth for the company as a whole.

D’Amaro’s bet is to cut unnecessary costs and make Disney’s different businesses work as one system. If One Disney can truly connect content, streaming, parks and consumer products, the current layoffs could become part of a broader reset. If not, Disney risks remaining a company with powerful brands but weak stock performance for much longer.

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