Walt Disney Co. is preparing for a significant round of layoffs in the coming weeks, according to a source who is familiar with the situation but not authorized to speak publicly. This strategic decision follows the company’s recent efforts to streamline its management structure, aimed at centralizing its vast marketing operations.
While Disney has not officially commented on these developments, reports from the Wall Street Journal indicate that the layoffs could impact as many as 1,000 employees, with a substantial number stemming from the consolidation of the marketing department. This move is part of a broader initiative led by newly appointed Chief Executive Josh D’Amaro, who emphasized the need for the company to function as “one Disney” since taking office last month. D’Amaro believes that all facets of Disney’s business—spanning film and television studios, a tourism division, streaming services, and live sports—contribute to strengthening the consumer relationship with Disney and its iconic characters.
Disney, like many other studios in Hollywood, is grappling with challenges such as decreased revenues from theatrical releases, the ongoing decline in linear television viewership, and diminishing profits from streaming services. Although the company’s theme parks have traditionally provided a robust economic foundation, recent statements suggest that Disney anticipates “headwinds” in international tourism, particularly affecting its U.S. parks.
The anticipated job cuts come amid a wider trend of layoffs within the entertainment industry. Just recently, Sony Pictures Entertainment announced plans to cut hundreds of positions globally as part of its own restructuring strategy.
Disney has a history of reducing its workforce, having laid off thousands in recent years after the return of former Chief Executive Bob Iger. At that time, Iger acknowledged that the company had been overproducing shows and movies in competition with streaming giants like Netflix, prompting a need to reevaluate its approach. The landscape continues to shift, and Disney’s latest adjustments reflect the ongoing challenges faced within the industry.
