The Disney Studios may be headed into a period of retrenchment with some cost-cutting measures possibly leading to layoffs, according to the L.A. Times.

Disney executives are meeting this week to deal with this worsening economy and declines in ad spendingDisney Studios.jpg.

Studio executives said Thursday that no decisions had been made on possible layoffs. People familiar with the situation have said reductions are being contemplated companywide, the Times said.

Disney spokespersons declined to comment.

Disney is not the only entertainment company to retrench in anticipation of recession. NBC Universal said two weeks ago said that it was planning to slash $500 million in spending — 3% of its budget — because it expected “unprecedented economic challenges” in the year ahead.