The Walt Disney Co. has begun a broad round of layoffs, which will result in 1,000 jobs being cut across multiple divisions within the Burbank entertainment giant.
The layoffs, which began Tuesday, will ripple across Disney’s television and movie studios, sports giant ESPN, its product and technology unit, corporate functions and marketing, according to a person familiar with the retrenchment but not authorized to comment.
Chief Executive Josh D’Amaro notified Disney staff members about the looming cuts on Tuesday morning. In the message, viewed by The Times, D’Amaro acknowledged the elimination of roles would be difficult.
The move follows Disney’s announcement in January that it would consolidate Disney’s sprawling marketing division.
“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,” D’Amaro said in the note.
“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,” D’Amaro wrote. “As a result, we will be eliminating roles in some parts of the company and have begun notifying impacted employees.”
The cost-cutting is one of the first major moves since D’Amaro became chief executive last month.
After officially taking the reins, D’Amaro told employees he wants the company — which includes film and TV studios, a tourism division, streaming services and live sports programming — to operate as “one Disney,” saying the global businesses all play a role in deepening consumers’ relationship with the brand and its characters.
Traditional entertainment companies have been reeling from the steady erosion of what was once an economic pillar — programming fees from ESPN, Disney Channel and other popular outlets.
Last week, Sony Pictures Entertainment said it planned to cut hundreds of its employees worldwide as it looked to restructure its business. Paramount Skydance, since its takeover by David Ellison, has eliminated more than 2,000 jobs. Even Netflix has jettisoned jobs.
Disney erased at least 8,000 jobs after D’Amaro’s predecessor, Bob Iger, returned for his second stint as CEO in November 2022. Iger determined that Disney was cranking out too many TV shows and made-for-streaming movies, many of which didn’t live up to the company’s high standards of quality and diluted its blockbuster franchises.
This year, the company has been centralizing its operations, including folding its marketing for entertainment, sports and experiences into a single division that reports to Asad Ayaz, its chief marketing officer.
The streamlining is a way to reduce expenses and better organize a sometimes confusing reporting structure.
“Despite these difficult decisions, I remain optimistic about where we’re headed as a company,” D’Amaro said in Tuesday’s note.
“Compassion and respect remain at the heart of our company,” D’Amaro wrote. “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.”
“I’m deeply grateful for all of your contributions and for the dedication, professionalism, and care you bring to your work each day,” D’Amaro said. “Even in challenging moments, you continue to demonstrate what makes Disney so special.”
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.latimes.com ’
