Walt Disney is reportedly preparing for significant workforce reductions, marking one of the first major actions under new CEO Josh D'Amaro. According to sources familiar with the matter, the entertainment giant plans to eliminate up to 1,000 positions in the coming weeks, primarily within its recently consolidated marketing division. Similar to other Hollywood studios, Disney has been grappling with declining profitability in its streaming operations while simultaneously facing reduced box office revenues and intense competition from tech companies like Amazon and Google's YouTube. The company is also seeking to free up capital to invest in digital ventures it considers to have growth potential. Since former CEO Bob Iger returned in 2022 and initiated a large-scale restructuring, Disney has already cut more than 8,000 jobs. Sources indicate that the upcoming layoffs were planned even before D'Amaro assumed his role. As of the end of fiscal 2025, Disney employed approximately 231,000 people, with about 80% working in its experiences division, which includes theme parks and consumer products. Most previous job cuts occurred in the entertainment, ESPN, and corporate operations units, while theme park and cruise businesses continued to expand. Since taking over last month, D'Amaro has yet to outline specific plans for reshaping Disney. Insiders suggest that one of his top priorities is to enhance collaboration between departments and improve operational efficiency. Employees have expressed concerns that layoffs could be part of this effort. The success of D'Amaro's initiatives will ultimately depend on his ability to revive the company's persistently weak stock performance. Disney's share price has fallen nearly 50% from its 2021 peak and currently trades at levels roughly equivalent to those seen a decade ago.
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