Disney Announces 300 Layoffs in Latest Restructuring Effort

The Walt Disney Co. has announced another round of layoffs, affecting 300 employees primarily in technology and human resources roles. This marks the fourth restructuring effort under CEO Josh D’Amaro since he took over in January. Previous cuts included 1,000 jobs in April, along with reductions at Pixar and National Geographic. D’Amaro emphasized the need to reduce costs to invest in growth, citing automation and leveraging technology as key strategies.

In an August letter to shareholders, Disney stated it was evaluating various cost-cutting measures, including labor and SG&A reductions. The latest round was signaled by Horacio Gutierrez, Disney’s chief legal and global affairs officer, who warned staff about a “transformation process” involving workflow automation. As of Sept. 30, Disney had not filed a Worker Adjustment and Retraining Notification with California authorities.

D’Amaro’s “One Disney” vision aims to integrate the company’s assets into a cohesive business, with technology at its core. Recent collaborations with OpenAI Group and NVIDIA Corp. highlight this focus, despite Disney pulling out of the OpenAI deal after the shutdown of its video tool “Sora.” The company appointed Karandeep Anand as its new chief technology officer in September, further emphasizing its tech-driven approach.

Analysts view the layoffs as part of Disney’s effort to streamline operations amid mounting competition and technological disruption. While Disney’s stock has struggled since its pandemic peak of $201.90 per share, the company reported a 7% revenue increase in the third quarter, driven by growth in experiences and entertainment subscriptions. The entertainment segment saw a 64% increase in operating income, thanks to higher subscription and affiliate fees. D’Amaro credited this success to leveraging intellectual property and creating an integrated consumer experience, as demonstrated by the global success of “Toy Story 5.”