Disney managers given savings targets ahead of expected 2027 layoffs
Some Disney managers were asked for up to 20% in annual cost savings, with a company-wide layoff round expected in early 2027.
Managers at Disney have been given targets for the size of the next company-wide layoff round, with some asked for up to 20% in annual cost savings, according to deadline.com. The round is expected in early 2027, likely in January.
The cuts are likely to be tied to the restructuring of Disney Entertainment Television led by its chairman, Debra OConnell. The division's TV networks are believed to be among the areas seriously affected.
Speculation about the scope of the changes includes further consolidation of 20th Television with ABC and Hulu, and possible integration of the Hulu and Disney+ content teams.
Executive changes under OConnell
In March, OConnell was named chairman of Disney Entertainment Television. In her first major executive move, she added 20th Television to the purview of Craig Erwich, president of Disney Television Group, with Karey Burke, president of 20th Television, reporting to him. Joe Earley also moved from co-president, direct-to-consumer for Disney Entertainment, to president of Disney Entertainment Television Franchise and Content Strategy under OConnell.
Disney recently sold its 50% stake in A+E Global Media to Hearst for $1.2B. Freeform was folded into the portfolios of Erwich and Simran Sethi, president of scripted programming for Hulu Originals and ABC Entertainment, a while back.
Quick answers
When is Disney's next layoff round expected?
The round is expected in early 2027, likely in January, according to deadline.com.
How large are the cost savings Disney managers were asked for?
Some managers were asked for up to 20% in annual cost savings.
Which Disney division is expected to be hit hardest?
Disney Entertainment Television's TV networks division is believed to be among the areas seriously affected.