Disney Layoffs Hit Studios, TV, ESPN Under New CEO Josh D’Amaro

Layoffs are hitting The Walt Disney Co., beginning Tuesday.

CEO Josh D’Amaro, only a month into the job, informed staff of the cuts in a memo. A source familiar with the matter tells The Hollywood Reporter that around 1,000 jobs are expected to be eliminated.

Cuts are expected in the company’s unified marketing organization under Asad Ayaz, which Disney announced in January, as well as in its studios and TV businesses, ESPN, product & technology, and certain corporate functions.

The unified marketing structure brought all of Disney’s sprawling marketing apparatus, from films, TV and ESPN to streaming and theme parks, into one group.

The company is said to be shifting more resources to other strategic priorities, especially given the rapid changes facing the entertainment business.

“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,” D’Amaro wrote in his memo. “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.”

D’Amaro was named the next CEO of Disney in February, and officially succeeded Bob Iger last month (Iger remains on the company’s board through the end of this year). Dana Walden was elevated to president and chief creative officer, unifying the company’s creative businesses.

In fact, that “One Disney” ethos appears to be a centerpiece of D’Amaro’s forward-looking strategy for the company.

“Our greatest advantage is not any one business, but how our global businesses come together,” the new CEO told staff in his first day in the job. “When our teams are aligned and working in a connected way, we can build on our strengths, reach people wherever they are, and deepen their relationship with Disney.”

D’Amaro’s strategic priorities are yet to be clarified, though sources have said that interactivity remains a key focus for him.

You can read D’Amaro’s memo to employees, below.

Dear Fellow Employees & Cast Members,

We have experienced a great deal of change these last few years, both at the company and across our industries. Knowing firsthand how these moments can bring uncertainty, I want to be open about some difficult news that will be communicated this week. 

In January, we announced our unified enterprise marketing and brand organization, designed to serve consumers in an even more connected way. 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. 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. 

I know this is hard. Those that will be leaving us have done meaningful work here and care deeply about this company. These decisions are not a reflection of their contributions, or of the overall strength of the company. Rather, they reflect our continual evaluation of how to more effectively manage our resources and reinvest in our businesses. 

Compassion and respect remain at the heart of our company. As we move forward through this transition, our priority is to support those impacted and help each person navigate what comes next with resources, guidance, and direct support. 

Despite these difficult decisions, I remain optimistic about where we’re headed as a company. I’m deeply grateful for all of your contributions and for the dedication, professionalism, and care you bring to your work each day. Even in challenging moments, you continue to demonstrate what makes Disney so special.

Josh