Disney to Cut Up to 1,000 Jobs in Latest Cost-Cutting Move

Disney is set to embark on its next phase of cost-cutting, which will involve laying off up to 1,000 employees, according to a person familiar with the matter. This initiative comes shortly after Josh D'Amaro took over as CEO in mid-March.

The layoffs are expected to mainly affect the company's marketing department, which was recently consolidated under Asad Ayaz, the newly appointed chief marketing and brand officer. Ayaz oversees marketing for all of Disney's divisions, including entertainment, experiences, and sports, and reports directly to D'Amaro and Dana Walden, Disney's president and chief creative officer.

Background

The changes to the marketing department structure occurred in January, when Bob Iger was still CEO of the company. Disney announced shortly after that D'Amaro would take over the top job, a long-awaited decision for the company. D'Amaro, who previously was chairman of Disney Experiences, succeeded Iger after a period of uncertainty for the media and theme park giant.

Iger reclaimed the Disney CEO role in late 2022, about two years after his initial departure. He was immediately tasked with a turnaround of the business as its stock price had fallen and earnings began to miss expectations. By February 2023, Disney had announced sweeping plans that reorganized the structure of the company, cut $5.5 billion in costs, and eliminated 7,000 jobs from its workforce.

On D'Amaro's first official day as CEO in March, he noted the work Iger had done to get the company past one of its most difficult periods. "When Bob returned to the company a few years ago, his goal was to fortify our business and lay the groundwork for long-term growth, by reigniting creativity and improving performance at our studios, building a robust and profitable streaming business, transforming ESPN for a digital future, and turbocharging our parks and experiences," D'Amaro said on stage at the company's investor day. "We've accomplished all of those things, and we're operating from a place of strength, with ample opportunity for growth."

Disney's stock was slightly down in afternoon trading on Thursday, following the news of the layoffs. The layoffs were first reported by The Wall Street Journal.