Disney Cuts 1,000 Jobs Across Company

Walt Disney Co. announced it will cut approximately 1,000 jobs across multiple divisions, including marketing, studio and television business, ESPN, products and technology, and corporate functions. The layoffs began this week under new CEO Josh D’Amaro's leadership to streamline operations amid declining TV business and heightened competition.

According to a person familiar with the development reported by The Guardian, the cuts will primarily affect the marketing group, which was reorganized in January. Disney began notifying employees this week. In an email seen by Reuters, D’Amaro stated that the company needs to foster a more agile and technologically-enabled workforce to meet future needs.

Like other Hollywood studios such as Warner Bros Discovery and Paramount Skydance, Disney is adjusting to new economic realities, including a declining television business, shrinking box office, and heightened competition. The last significant round of layoffs at Disney came in 2023 when the company cut 7,000 jobs as part of an effort to save $5.5 billion in costs.

The move follows Disney’s announcement in January that it would consolidate its marketing division. The traditional television business, which has been reeling from the steady erosion of programming fees from ESPN and other popular outlets, will also see a reduction in headcount. Consumers have drifted to streaming services, which offer leaner profits and a more fickle customer base.

Disney’s reduction affects fewer than 1% of its global workforce. The company had about 230,000 employees at the end of last year, including tens of thousands of workers at its theme parks and resorts around the world and its cruise lines. Those units have been spared from the bulk of the cuts.