The Walt Disney Company is preparing to launch another phase of cost-cutting that could result in up to 1,000 layoffs, according to a person familiar with the matter.
The move signals continued efforts by the company to streamline operations and maintain financial discipline following a period of major restructuring.
Leadership Transition Sparks Strategic Shift
The latest cost-cutting initiative comes shortly after Josh D’Amaro assumed the role of CEO in mid-March.
D’Amaro took over leadership during a time when Disney is working to stabilize its business and position itself for long-term growth after years of internal changes and industry challenges.
Marketing Department Expected to Be Hit Hardest
Most of the anticipated layoffs are expected to affect Disney’s marketing division.
The department was recently reorganized under Asad Ayaz, who was appointed chief marketing and brand officer in January. In this role, Ayaz oversees marketing across all of Disney’s major segments, including entertainment, experiences, and sports.
This marks the first time the company has unified its entire marketing function under a single executive.
Broader Executive Structure
Ayaz reports directly to D’Amaro and Dana Walden, reflecting a more centralized leadership structure.
The consolidation of marketing responsibilities was part of a broader effort to improve efficiency and coordination across Disney’s divisions.
Continued Impact of Earlier Restructuring
The groundwork for these changes was laid under former CEO Bob Iger, who returned to lead the company in late 2022.
At the time, Disney was facing declining stock performance and weaker earnings. Iger initiated a major turnaround plan that included restructuring operations, cutting $5.5 billion in costs, and eliminating around 7,000 jobs.
A Company Emerging from Transition
D’Amaro succeeded Iger following a period marked by leadership uncertainty, internal reorganization, and a highly watched succession process.
On his first day as CEO, D’Amaro acknowledged Iger’s efforts to rebuild the company’s foundation.
He pointed to improvements in creative output, progress in building a more profitable streaming business, advancements in ESPN’s digital strategy, and continued growth in theme parks and experiences.
Market Reaction and Outlook
Disney’s stock saw a slight dip in afternoon trading following reports of the layoffs.
While the company now positions itself as operating from a place of strength, the planned job cuts suggest that leadership remains focused on tightening operations and preparing for future challenges in a competitive media landscape.
