Disney Warns of 'Hard Choices' Amidst Layoffs and Automation

Disney's Chief Legal and Global Affairs Officer Horacio Gutierrez sent an end-of-week memo to the LGA department, hinting at layoffs amidst a 'transformation process' that involves automating certain workflows using the latest technologies.

The memo, dated September 18, was shared among Disney staff and the entertainment law community in LA, NYC, and DC. Gutierrez warned that the company's legal, government relations, operations, and other departments will undergo a 'reinvention' due to technological changes in how work gets done.

Gutierrez emphasized that this transformation would require 'hard choices' about resource allocation, including staffing investments. He stated that the LGA department would be 'a much smaller organization than it is today,' and some staff members would be personally affected by these decisions.

The memo also mentioned exploring new models for workloads, such as automating certain tasks, moving to self-service models, engaging alternative legal providers, and outsourcing. Gutierrez referenced Disney's Chief Technology Officer Karandeep Anand, who joined the company on the same day the memo was sent, and reported directly to Josh D'Amaro.

The memo aligns with previous statements from Disney executives that more layoffs are imminent. The deadline for qualifying employees to take a voluntary early retirement offer is approaching, which would likely be followed by involuntary job cuts.