Why Did Disney Lay Off 1,000 People? The CEO Josh D'Amaro Memo Explained

Disney's new CEO, Josh D'Amaro, broke the hard news to staff on Tuesday in a lengthy, company-wide memo.

D'Amaro personally informed staff to brace for incoming layoffs, which are expected to impact around 1,000 jobs, according to a source for The Hollywood Reporter. The news comes barely a month after D'Amaro became Disney's new CEO.

The CEO said the cuts are part of the company's push towards a unified marketing organisation under Asad Ayaz, who was appointed in January as The Walt Disney Company's first-ever Chief Marketing and Brand Officer.

Following the news, he confirmed layoffs at Disney's studios and TV businesses, at ESPN, product and technology department, and other corporate functions.

Disney to Cut 1,000 Staff to 'Foster More Agile Workforce'

'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,' he wrote. '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.'

Impacted employees are already being notified according to the memo. 'These decisions are not a reflection of their contributions, or of the overall strength of the company,' D'Amaro explained. 'Rather, they reflect our continual evaluation of how to more effectively manage our resources and reinvest in our businesses.'

New Job Cuts Add to Disney's Previous Rounds of Layoffs

The new round of layoffs follows the more than 8,000 jobs Disney has cut since 2023. By the end of the last fiscal year, the company had 231,000 employees, which include part-time theme park workers. No timeline was detailed for the upcoming layoffs outside of D'Amaro's memo.

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

'Compassion and respect remain at the heart of our company,' he asserted. '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.'

D'Amaro said he remains optimistic about the company's future, despite the difficult decision. He has been at Disney since 1998. Most recently, he was head of the Experiences division, which encompasses the company's theme parks, cruise ships, resorts, and global consumer products divisions.

Hollywood Struggles as Major Studios Follow Suit

The cuts add to the waves of downsizing and reorganisations that hit other major Hollywood studios in recent years. Industry insiders attribute the hurdle to the pandemic and the rise of streaming, both prompting companies to maximise profitability by leveraging new technology and cutting costs.

Early this month, the Sony Group's film and television arm also confirmed a round of layoffs, affecting hundreds of jobs. Hollywood is also bracing for impact amid Paramount Skydance's potential acquisition of Warner Bros. Discovery.