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Disney Eyes Sweeping Overhaul Following Multiple Rounds of Employee Layoffs

Disney’s latest round of employee layoffs may not be the end of the company’s efforts to reduce costs and reorganize its entertainment business.

After eliminating hundreds of positions throughout 2026, The Walt Disney Company is reportedly considering another sweeping overhaul that could place additional jobs at risk.

The potential restructuring comes as CEO Josh D’Amaro continues guiding Disney through a changing entertainment industry, where streaming services have become increasingly important.

And while Disney has already made several major decisions this year, its latest reported plans suggest even more changes could be coming.

Josh D'Amaro on stage with "Disney" written in bright white letters on the screen behind him
Credit: Disney

Hundreds of Disney Employees Could Be Affected by New Plans

According to an October 19 report from TIKR, Disney is exploring a restructuring of several television operations.

The proposed changes would involve ABC Entertainment, 20th Television, Hulu Originals, and Freeform.

Disney Entertainment Television chairman Debra O’Connell is reportedly leading the effort, which would reorganize the company’s television business around streaming customers and major entertainment franchises.

The changes could reduce overlapping operations between divisions while allowing Disney to focus more resources on its growing streaming business.

However, the potential consequences for employees could be substantial.

Hundreds of positions could be affected if Disney moves forward with the reported restructuring.

The plans have not been finalized, and the process may extend beyond the end of 2026.

For employees already dealing with uncertainty following previous layoffs, the possibility of another major reorganization adds new concerns.

Disney Has Already Made Significant Workforce Reductions

Disney’s reported plans follow several rounds of job cuts earlier this year.

According to TIKR, the company recently eliminated several hundred positions, with human resources and technology departments accounting for much of the impact.

Those cuts followed approximately 1,000 layoffs in April.

The reductions represent part of Disney’s broader effort to improve efficiency while adjusting to changing consumer habits.

split image: on the left, the disney+ logo. on the right, minions from despicable me
Credit: Disney

Traditional television has faced growing pressure as audiences move away from cable subscriptions in favor of streaming platforms.

Disney has responded by placing greater emphasis on Disney+ and Hulu, which have become increasingly important to its entertainment strategy.

The company recently raised the monthly prices of its ad-free Disney+ and Hulu subscriptions by $2.50, bringing each individual plan to $21.49.

Meanwhile, Disney’s streaming operations generated $712 million in operating income during the fiscal third quarter, more than doubling their performance from the comparable period.

Those results demonstrate why Disney continues investing in streaming, even as it considers significant organizational changes.

For now, the company has not confirmed how many additional jobs could be affected by the proposed overhaul.

Disney also has not announced plans to permanently close ABC Entertainment, Freeform, or the other divisions reportedly involved.

Still, after multiple rounds of layoffs and continued efforts to reduce expenses, the possibility of another sweeping restructuring suggests Disney’s corporate transformation is far from finished.

Andrew Boardwine

A frequent visitor of Walt Disney World Resort and Universal Orlando Resort, Andrew will likely be found freefalling on Twilight Zone Tower of Terror or enjoying Pirates of the Caribbean. Over at Universal, he'll be taking in the thrills of the Jurassic World Velocicoaster and Revenge of the Mummy

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