Disney Prepares for 'Hard Choices' as Layoffs Loom in Legal Department

Disney's transformation process is set to continue with significant layoffs in the Legal and Global Affairs department, according to a memo sent by Chief Legal and Global Affairs Officer Horacio Gutierrez on September 18, 2026. The language in the memo was direct and serious, warning employees that the company will undergo 'hard choices' ahead.

Gutierrez stated that the department, which employs fewer than 1,000 people worldwide, will be a 'much smaller organization' as a result of automation efforts, outsourcing, and alternative legal providers. While not explicitly mentioning artificial intelligence, industry observers interpreted the memo's language as clear implications for AI adoption.

This warning is part of a broader trend within Disney, which has already undergone several rounds of significant layoffs in 2026. In April, approximately 1,000 employees were let go, including around 8% of Marvel Entertainment. More limited cuts targeting HR, product and tech, and other operations functions were planned for the end of September.

Disney's focus on AI and technology is evident in its recent hires, such as Karandeep Anand, the company's first-ever Chief Technology Officer, who previously ran Character.AI. This move comes alongside voluntary early retirement packages offered to director-level executives and above in August.