The Walt Disney Company is preparing to eliminate up to 1,000 jobs globally as part of a broader restructuring effort aimed at cutting costs and adapting to a rapidly shifting entertainment landscape, according to people familiar with the plans. The layoffs, expected in the coming weeks, will disproportionately affect the company's marketing operations, marking one of the first major moves under chief executive Josh D'Amaro.
The reductions come as Disney continues to navigate declining profitability in traditional television and intensifying competition in streaming, where margins remain tighter. The company has been consolidating functions across divisions to improve efficiency, particularly in marketing, where previously separate teams for entertainment, sports, and theme parks have been unified.
Sources indicate that the marketing division will bear the largest share of the cuts, following its recent reorganization under executive Asad Ayaz. The restructuring is part of an internal initiative known as Project Imagine, which aims to streamline operations and align Disney's brand strategy across platforms.
The layoffs extend a multi-year effort to reduce costs across the organization. Since Bob Iger returned to lead the company in 2022, Disney has already eliminated more than 8,000 positions. The latest round was reportedly set in motion before D'Amaro assumed the chief executive role, reflecting ongoing structural pressures rather than a sudden strategic shift.
By the end of fiscal 2025, Disney employed approximately 231,000 people globally. Roughly 80% of that workforce is tied to its experiences segment, including theme parks, cruises, and merchandise, which have remained strong performers. In contrast, job reductions have been concentrated in entertainment, ESPN, and corporate functions.
The company's restructuring reflects broader industry dynamics. Major studios including Sony Pictures, Paramount, and Warner Bros. Discovery have all implemented layoffs as they adjust to the transition from linear television to digital streaming. The shift has compressed revenue models and forced companies to rethink cost structures while investing heavily in content and technology.
Disney's strategic adjustments include:
- Consolidation of Disney+ and Hulu into a unified streaming platform
- Centralization of marketing under a single leadership structure
- Engagement of consulting firm Bain & Co. to guide cost optimization
Executives have framed these changes as necessary to support long-term growth in digital media. At the same time, the company faces pressure from investors to improve financial performance. Disney's stock has declined nearly 50% from its 2021 peak, underscoring concerns about profitability and execution in its streaming strategy.
Despite the layoffs, Disney has continued to signal selective expansion in areas tied to physical experiences. D'Amaro recently pointed to new development projects, including an expansion at Disneyland Paris expected to create 1,000 jobs. "I believe we will continue to be the number one tourist destination. I believe that we will continue to add jobs. In fact, we're adding 1,000 jobs, just for this new land that we have built," he said.
