Disney Stock Tumbles on New Layoffs Amid Restructuring Efforts
Walt Disney's stock price is dropping due to recent layoffs within the company. The news comes as part of ongoing cost-cutting and restructuring efforts, with several hundred jobs cut in the human resources and technology teams.
The latest round of layoffs follows a larger effort by the company to reduce its workforce, which included eliminating 1,000 roles in April and 7,000 positions in 2023 under then-CEO Bob Iger as part of a $5.5 billion cost-cutting push.
Despite the layoffs, analysts are still bullish on Disney's prospects. BofA Securities analyst Jessica Reif Ehrlich maintained a Buy rating and a price target of $125 this week, expecting a solid quarter helped by theme park attendance strength and two new cruise ships.
Looking ahead to fiscal 2027, Ehrlich sees the year as having 'a lot of moving parts,' with a lighter content slate creating a tougher setup in Entertainment. However, Sports is expected to benefit from the NFL Network deal and Super Bowl.