Disney’s New CEO Pushes Major Overhaul, Hundreds of Employees at Risk

The Walt Disney Company is preparing for another major shakeup, and this time, some of its biggest entertainment divisions could be affected.

Disney has already made several significant changes to its business in 2026, including layoffs, streaming price increases, and adjustments to its long-term entertainment strategy. However, a new report suggests the company isn’t finished making changes.

Now, Disney is reportedly considering a sweeping restructuring that could affect hundreds of employees and change how several familiar television brands operate.

The potential overhaul comes as CEO Josh D’Amaro continues reshaping the entertainment giant, with Disney placing greater emphasis on streaming, profitability, and its most valuable franchises.

Here’s what’s being reported about Disney’s latest plans, which divisions could be affected, and what the changes could mean for the company’s future.

Disney Reportedly Planning Major Entertainment Restructuring

According to an October 19 report from TIKR, Disney is considering a significant reorganization of its television operations.

The proposed changes would bring several major entertainment divisions closer together, potentially changing how Disney develops, manages, and distributes television programming.

The divisions reportedly involved include ABC Entertainment, 20th Television, Hulu Originals, and Freeform.

Each has played an important role in Disney’s television business, but the company is now looking at ways to streamline operations as audiences increasingly turn toward streaming services.

Debra O’Connell, chairman of Disney Entertainment Television, is reportedly leading the restructuring effort.

Rather than continuing to organize its television operations primarily around traditional cable networks and individual brands, Disney wants to build a structure that places streaming audiences and entertainment franchises at the center of its strategy.

That could mean significant changes behind the scenes, particularly in departments where responsibilities overlap.

The report indicates that hundreds of jobs could be affected by the proposed restructuring.

However, Disney has not finalized the reported plans, and the company may not complete the process before the end of 2026.

That distinction is important. While the potential impact on employees is substantial, the report does not establish that hundreds of additional layoffs have already been approved.

Still, the possibility of another major workforce shakeup comes at a difficult time for Disney employees who have already experienced several rounds of cuts this year.

Disney Has Already Eliminated Hundreds of Jobs in 2026

The reported restructuring follows an ongoing effort to reduce costs and reorganize operations throughout The Walt Disney Company.

According to TIKR, Disney recently eliminated several hundred positions, primarily affecting its human resources and technology departments.

The latest reductions represent the third round of layoffs under D’Amaro’s leadership in 2026.

Earlier this year, approximately 1,000 employees were affected by cuts in April.

Now, with additional restructuring reportedly under consideration, more employees could face uncertainty heading into the final months of the year.

For Disney, the changes reflect a broader effort to improve efficiency and strengthen the financial performance of its entertainment business.

Traditional television networks face mounting pressure as consumers move away from cable subscriptions and increasingly rely on streaming platforms for their favorite shows and movies.

Disney operates on both sides of that changing industry.

Its established television brands remain important parts of the company, but Disney+ and Hulu have become central to its future plans.

Bringing television operations closer together could allow Disney to reduce overlapping responsibilities while making it easier to develop programming for streaming audiences.

However, the company must also balance potential savings against the risk of disrupting the creative teams responsible for producing its content.

That challenge becomes even more significant when hundreds of positions could be involved.

Disney+ and Hulu Subscribers Also Facing Higher Prices

While Disney works through its proposed television restructuring, customers are experiencing another major change.

Disney recently increased subscription prices for Disney+ and Hulu, continuing a trend of higher streaming costs.

The ad-free versions of both services increased by $2.50 per month, bringing their individual subscription prices to $21.49.

That means customers subscribing to either service’s premium plan now face an annual cost of $257.88 before any additional fees or applicable taxes.

Disney’s decision to raise prices comes as the company works to make streaming a more profitable part of its business.

The strategy presents an interesting challenge.

Disney wants to increase the amount of money it earns from streaming subscribers while simultaneously reducing expenses across its entertainment operations.

However, higher subscription prices could also encourage some customers to cancel their services or switch to less expensive plans.

According to Disney’s official pricing information, existing subscribers who signed up before September 23 will see the new pricing during their billing cycle on or after October 21, 2026.

For Disney, maintaining subscribers while charging higher prices will be an important part of its streaming strategy moving forward.

Disney’s Streaming Business Is Already Showing Significant Growth

Despite the ongoing restructuring and layoffs, Disney’s recent financial results suggest its streaming business is moving in a positive direction.

According to TIKR, Disney reported $712 million in streaming operating income during its fiscal third quarter, more than double the amount recorded during the comparable period.

The company also reported adjusted earnings per share of $2.06, exceeding analyst expectations of $1.86.

Meanwhile, Disney’s streaming business achieved an operating margin of approximately 13%.

Those results represent meaningful progress for a business that previously struggled with substantial losses as Disney invested heavily in building its streaming platforms.

However, Disney still faces stiff competition from Netflix, which reported an operating margin of 33.4% during its second quarter.

That difference helps explain why Disney continues looking for opportunities to reduce expenses and reorganize its entertainment divisions.

The company wants to build a more efficient operation capable of competing with streaming-focused businesses while continuing to produce the television shows and films that attract subscribers.

Disney’s theme parks and cruise operations also remain important to the company’s financial performance.

Its Experiences division delivered record fiscal third-quarter revenue and operating income, demonstrating the strength of Disney’s broader entertainment portfolio.

Unlike streaming-only competitors, Disney can expand successful entertainment properties into theme park attractions, merchandise, and cruise experiences.

That gives the company several ways to generate revenue from its characters and stories.

Still, those advantages do not eliminate the financial challenges facing its traditional television business.

Disney’s New Leadership Continues Pushing Major Changes

The reported television overhaul is also part of a larger transformation under D’Amaro.

Since becoming CEO in March 2026, the former Disney Experiences chairman has overseen several changes designed to bring the company’s businesses closer together.

Disney has also placed greater emphasis on technology and streaming leadership.

Karandeep Anand was appointed chief technology officer, while Adam Smith took on responsibility for the company’s direct-to-consumer operations.

These appointments reflect Disney’s growing focus on building a more connected digital entertainment business.

Instead of treating traditional television networks, streaming platforms, and other entertainment operations as largely separate businesses, Disney appears interested in creating a more unified approach.

That could eventually influence how the company develops new programming, manages its franchises, and distributes entertainment across different platforms.

However, Disney has not announced that ABC Entertainment, Freeform, or any other television division will shut down as part of the proposed restructuring.

The reports concern organizational changes and potential job reductions, not confirmed closures of the television brands themselves.

What Happens Next for Disney?

Disney’s next major financial update is expected in November, when the company reports its fiscal fourth-quarter results.

According to TIKR, Disney has projected approximately $4.9 billion in total segment operating income for the quarter and reiterated expectations for adjusted earnings-per-share growth of approximately 12% for fiscal 2026, excluding the additional 53rd week.

Those results could provide more information about how Disney’s restructuring efforts are affecting its overall financial performance.

Meanwhile, employees across the company’s television divisions will be watching for additional details about the proposed changes.

Although hundreds of positions could be affected, the final scope of the restructuring remains uncertain.

Disney could continue refining the plan through the remainder of 2026 before making additional organizational decisions.

For viewers, the changes do not currently mean that their favorite television networks or streaming services are disappearing.

Instead, the reported overhaul reflects Disney’s effort to change how its entertainment business operates behind the scenes.

With streaming becoming increasingly important to the company’s future, Disney appears prepared to make significant changes to its traditional television structure.

And if the restructuring moves forward as reported, hundreds of employees could find themselves caught in the middle of one of Disney’s biggest entertainment reorganizations of the year.