Disney layoff shock: New CEO announces 1,000 job cuts in stark email to staff

Disney layoffs explained: The Walt Disney Company will be cutting around 1,000 jobs as new CEO Josh D'Amaro begins reshaping the company’s operations, marking his first major move since taking over leadership.

Disney Layoffs 2026: 1,000 Jobs Cut Under New CEO Josh D’Amaro

Employees were informed through an internal email, where D’Amaro explained the need to streamline the organization and adapt to rapid changes in the entertainment industry, as per a report.

Why Disney Is Restructuring Its Workforce Now

D’Amaro said in a memo to employees on Tuesday that, “Over the past several months, we have looked at ways in which we can streamline our operations in various parts of the company to ensure we deliver the world-class creativity and innovation our fans value and expect from Disney,” adding, “Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically-enabled workforce to meet tomorrow’s needs. As a result, we will be eliminating roles in some parts of the company and have begun notifying impacted employees,” as quoted by Bloomberg.

Which Departments Are Most Affected by Disney Layoffs

The layoffs will impact several parts of the business, with the marketing division expected to be hit the hardest. The department was recently reorganized in January under Asad Ayaz, who was appointed chief marketing and brand officer.

Other affected areas include Disney’s studio and television business, ESPN, products and technology, and certain corporate functions, as per a Reuters report. The company has already begun notifying employees this week.

Hollywood Layoffs Trend: Warner Bros, Paramount, and Sony Follow

The move comes as Disney, like other major Hollywood studios, adjusts to changing industry conditions. These include a declining television business, reduced box office performance, and increasing competition.

Disney is not alone in making such moves. Other major players like Warner Bros. Discovery and Paramount Skydance have also carried out layoffs as the industry continues to evolve.

Across Hollywood, companies are facing pressure to improve profitability while adapting to new viewing habits and economic realities. Recent layoffs at Sony Group Corporation’s film and television division further highlight the broader trend, as per the Bloomberg report.

Disney Workforce Size and Previous Job Cuts in 2023

This latest round follows significant job cuts in recent years. In 2023, Disney announced plans to eliminate 7,000 positions as part of a broader effort to reduce costs by $5.5 billion and address losses in its streaming business, as per the Reuters report.

Before the latest layoffs, the company had approximately 231,000 employees at the end of its fiscal year.

FAQs

Why is Disney laying off employees?
To streamline operations and adapt to industry changes.

How many jobs are being cut?
Around 1,000 positions.