Disney Stock Seesaws Amid Reports of Further Layoffs
The Walt Disney Company's stock price has stabilized after experiencing a drop on Thursday. Reports indicate that the company is planning to cut hundreds of jobs in its human resources and technology departments, following a similar move earlier this year.
This latest round of layoffs builds upon previous restructuring efforts under CEO Josh D'Amaro, who took over in March. In April, Disney eliminated around 1,000 positions as part of an ongoing cost-reduction program initiated by former CEO Bob Iger in 2023, which aimed to save $5.5 billion.
Analysts have adjusted their outlooks ahead of Disney's fiscal fourth-quarter earnings report on November 12. BofA Securities' Jessica Reif Ehrlich maintained a Buy rating and a price target of $125 for the stock, citing resilient theme park attendance and new cruise ship deployments as positives, despite softness in theatrical box office results.
Ehrlich projects Disney's fiscal 2027 revenue to reach $105 billion and earnings per share at $7.52, while increasing her operating income estimate to $20.8 billion.