New reports indicate that the Walt Disney Company is preparing for a new round of layoffs that could affect up to 1,000 employees. The cuts would mark the first major workforce reduction since Josh D’Amaro took over as chief executive officer last month.
The planned layoffs are expected to take place over the coming months and come as Disney continues to reorganize its operations and reduce costs across its media and entertainment businesses.
First Major Cuts Under D’Amaro
If finalized at the reported scale, the layoffs would represent the largest workforce reduction since D’Amaro assumed the CEO role. Disney employed more than 230,000 people globally at the end of its most recent fiscal year, with the majority working in part-time roles within the company’s parks and experiences division.
The division to be most impacted seems to be Marketing.
Marketing Consolidation
Many of the expected job cuts are tied to a recent restructuring of Disney’s marketing departments.
In January, the company consolidated marketing operations across its major divisions under Chief Marketing Officer Asad Ayaz. The initiative, referred to internally as “Project Imagine,” was designed to eliminate redundancies and unify Disney’s global marketing strategy.
The restructuring is part of a broader effort to streamline operations and improve collaboration across the company.
(In my experience, marketing cuts are usually indicative of a bigger problem.)
Disney insiders say the planned layoffs reflect D’Amaro’s “One Disney” strategy, as leadership looks to simplify internal structures and increase efficiency.
Continued Cost-Cutting Efforts
The latest round of cuts follows several years of workforce reductions at Disney. Since Bob Iger returned as CEO in 2022, the company has eliminated more than 8,000 positions to cut costs.
Disney has also reportedly worked with consulting firm Bain & Company to identify additional opportunities for efficiency and cost savings.
Struggles at the Walt Disney Company?
The layoffs come at a time when Disney, like other major media companies, is facing ongoing challenges.
In the past few years, the company has seen:
- Declining revenues from traditional linear television
- Lower profit margins from streaming services
- Fluctuations in theatrical performance
- Reduced park attendance and “headwinds” coming soon.
(While Disney’s parks division has remained a strong financial driver, the company has recently warned of potential “headwinds” in international tourism to its U.S. destinations.)
Again, marketing is one of the first things to get cut when financial troubles are on the horizon. Hopefully, that is not the case.
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