Disney Announces Major Workforce Reduction of Up to 1,000 Employees
In a significant corporate restructuring move, The Walt Disney Company is preparing to cut as many as 1,000 jobs in the coming weeks. This marks one of the first substantial actions under the leadership of new CEO Josh D'Amaro, according to a detailed report from The Wall Street Journal.
Targeted Layoffs Focus on Marketing Department
The upcoming layoffs will primarily impact Disney's marketing department, which was recently consolidated as part of a broader, company-wide cost-cutting initiative. This department unification occurred earlier this year under chief marketing officer Asad Ayaz through an internal program known as Project Imagine.
The entertainment giant faces multiple financial pressures that have prompted these workforce reductions. Disney is grappling with shrinking profits from its streaming services compared to traditional television revenues, weaker box office returns from recent film releases, and increasingly fierce competition from technology players like Amazon and YouTube.
Strategic Shift Toward Digital Ventures
Disney aims to redirect the funds saved from these layoffs toward digital ventures with stronger growth potential. The company is actively combining staff from Disney+ and Hulu as it integrates both streaming platforms into a single application, reflecting this strategic digital pivot.
Consulting firm Bain & Company has been advising Disney on its comprehensive cost-cutting strategy, which includes these workforce reductions and operational consolidations.
Continuing Restructuring Under New Leadership
These latest job cuts were reportedly planned before D'Amaro officially assumed the CEO role but will be executed under his leadership. This continues a pattern of restructuring that began when Bob Iger returned as CEO in 2022.
Since Iger's return, Disney has already eliminated more than 8,000 positions as part of his sweeping restructuring plan. The company ended fiscal 2025 with approximately 231,000 employees globally, with about 80% working in the experiences division that includes theme parks and consumer products.
Streamlining Operations Across Divisions
Disney has been systematically merging long-siloed operations to streamline spending and improve coordination between departments. While entertainment and corporate operations have faced reductions, the parks and cruise businesses continue to expand their workforce and operations.
The company's consolidation efforts represent a strategic response to changing market conditions in the entertainment industry, where traditional revenue streams face disruption from digital alternatives and increased competition from technology companies entering the media space.
