Disney Initiates New Round of Cost-Cutting Under CEO Josh D'Amaro

The Walt Disney Company is preparing a new phase of expenditure reductions that will see as many as 1,000 employees lose their jobs. According to sources familiar with the matter, the layoffs are expected to be concentrated within the company's marketing department. This initiative follows the appointment of Josh D'Amaro as CEO in mid-March. The marketing department was recently centralized under Asad Ayaz, the chief marketing and brand officer, who now oversees marketing across the entertainment, experiences, and sports divisions. This consolidation represents the first time Disney has brought all its units under a single marketing chief. The current cuts follow a massive restructuring effort led by former CEO Bob Iger. In February 2023, Iger implemented a plan to reduce costs by $5.5 billion and eliminate 7,000 jobs to stabilize the business after a period of declining stock performance and earnings misses. Disney shares traded slightly lower following the reports. Despite the layoffs, CEO D'Amaro has stated that the company is operating from a position of strength, aiming to build on the foundation laid by Iger to drive long-term growth in streaming, the digital transformation of ESPN, and the company's theme parks and experiences.