The Walt Disney Co. is reportedly preparing to cut as many as 1,000 jobs in the coming weeks, marking one of new CEO Josh D'Amaro's first major moves since taking over. The layoffs are expected to affect multiple parts of the company, with a large portion coming from Disney's recently merged marketing division. The report also said that these plans had been launched before Damaro officially took over.
Cost pressure drives restructuring
Disney's latest round of layoffs reflects broader pressures facing the entertainment industry.
Like its peers, the company is adapting to a shift in the economic model as streaming generates lower profits than traditional linear TV.
At the same time, box office revenue has slowed and competition from technology platforms has increased.
Companies like Amazon and YouTube have emerged as major competitors for viewers' attention and advertising dollars.
Disney is looking to free up resources to invest in digital businesses it believes have stronger long-term growth potential.
Disney's actions are part of an overall trend in the media and entertainment industry.
Studios including Sony Pictures Television, Paramount and Warner Bros. Discovery have also implemented layoffs in recent years.
According to reports, more layoffs may follow if Paramount completes its planned acquisition of Warner Bros. Discovery.
part of wider job cuts
The planned layoffs follow years of restructuring efforts.
Disney has cut more than 8,000 jobs since Bob Iger returned to lead the company in 2022.
Disney employed about 231,000 people as of the end of fiscal 2025, about 80% of whom worked in its Experiences segment, which includes theme parks and consumer products.
Most of the layoffs occurred in entertainment, ESPN and corporate operations, while businesses such as theme parks and cruise ships continued to expand.
Integration and Consolidation Efforts
Disney has been consolidating operations to improve efficiency and reduce costs.
In January, the company unified marketing efforts across its entertainment, experience and sports divisions under one chief marketing officer, Asad Ayaz.
The plan to streamline operations and cut expenses is known internally as "Project Imagine."
The company is also consolidating its streaming platforms, merging teams for Disney+ and Hulu with the goal of eventually integrating the two services into a single app.
Disney has been working with consultants from Bain & Company on its cost-cutting strategy.
Keep an eye on collaboration and stock price performance
Damaro has yet to elaborate on his long-term strategy since taking over last month.
However, the report added that one of his top priorities is to improve coordination between departments to increase efficiency.
Employees had expected layoffs to be part of the effort.
The ultimate effectiveness of the restructuring will be judged by its impact on Disney's financial performance and stock price.
The stock has fallen nearly 50% from its 2021 peak and is currently trading at levels similar to a decade ago.