Disney is set to lay off approximately 1,000 employees, marking the first major job cuts under new CEO Josh D’Amaro. The layoffs will primarily impact the company’s marketing division, with many of the positions being eliminated as part of Disney's ongoing restructuring process. While the layoffs are significant, they affect less than 1% of Disney’s global workforce, which stood at about 231,000 employees at the end of its 2025 fiscal year. This move comes after Disney made substantial workforce reductions under D’Amaro’s predecessor, Bob Iger, who had already slashed over 8,000 jobs since 2022.
The restructuring aims to streamline operations and address the challenges Disney faces in the increasingly competitive streaming market. Disney's Chief Marketing Officer, Asad Ayaz, has launched a project called Imagine, which consolidates the marketing teams across film, television, and streaming platforms. This restructuring is meant to eliminate duplication and make decision-making more efficient. With the pressure from competitors like Netflix and Amazon Prime Video, Disney's traditional revenue model, which once relied heavily on linear television, is now facing smaller margins, particularly from its streaming ventures.
As part of the broader industry trend, Disney is not alone in making these tough decisions. Other Hollywood studios, including Sony Pictures, Paramount, and Warner Bros Discovery, have also announced layoffs. Disney, however, has had to deal with additional setbacks, including the loss of a $1 billion deal with OpenAI, which would have featured its iconic characters in AI-generated video content. This loss further exacerbates the company's need to streamline its operations to stay competitive in the evolving media landscape.
The reduction in jobs also extends to other parts of the company. Disney has already impacted its entertainment division, including ESPN, where 30 employees are expected to be let go in non-camera roles. Furthermore, the company is preparing to merge its Disney Plus and Hulu platforms, which could contribute to more job cuts. As Disney navigates these challenges, the focus remains on restructuring its workforce and operations to ensure long-term profitability in a rapidly changing market.
