Disney Layoffs Could Reach 1,000 as Cost-Cutting Continues Under D’Amaro

According to CNBC, Disney is preparing to lay off as many as 1,000 people to "begin its next phase of cost cutting." 

CNBC notes that The Wall Street Journal first reported the layoffs. 

Disney Leadership and Marketing Consolidation

This cost-cutting mindset has followed Josh D'Amaro's takeover as Disney CEO in mid-March. D'Amaro previously served as the company's chairman of Disney Experiences. 

The layoffs are expected to impact the marketing department mostly, CNBC reports. That department, under Asad Ayaz, who was named chief marketing and brand officer in January, has been massively consolidated recently. 

Ayaz oversees entertainment, experiences, and sports in his new role, and now all of these units are under one person, who reports to D'amaro and to Disney's president and chief creative officer, Dana Walden. This new consolidation is part of "Project Imagine." 

Disney Under Bob Iger and Previous Cost-Cutting Measures

Changes to Ayaz's role and the marketing department occurred under former CEO Bob Iger's watch before he stepped down. 

Iger took a couple of years off from his role, but returned in late 2022. He was tasked with turning around the business as the stock had fallen, and earnings weren't meeting expectations. 

In February 2023, shortly after Iger came back, he cut $5.5 billion in costs and eliminated 7,000 jobs. 

When D'Amaro took over, he noted Iger's past work in getting Disney through that rough period. 

“When Bob returned to the company a few years ago, his goal was to fortify our business and lay the groundwork for long-term growth, by reigniting creativity and improving performance at our studios, building a robust and profitable streaming business, transforming ESPN for a digital future, and turbocharging our parks and experiences,” D’Amaro said on stage at the company’s investor day.

“We’ve accomplished all of those things, and we’re operating from a place of strength, with ample opportunity for growth.”