Layoffs hit Walt Disney Co. starting Tuesday.
CEO Josh D’Amaro, who has only been in the role for one month, informed employees of the cuts in a memo. A source familiar with the matter says Hollywood Reporter About 1,000 jobs are expected to be cut.
Cuts are expected to be made to the company’s unified marketing organization under Asad Ayaz’s leadership, which Disney announced in January, as well as to its studios, television businesses, ESPN, product and technology, and some corporate functions.
The unified marketing structure brought together all of Disney’s sprawling marketing apparatus, from movies, television and ESPN to streaming and parks, into one group.
The company is said to be shifting more resources to other strategic priorities, especially in light of the rapid changes facing the entertainment sector.
“Over the past few months, we have looked at ways we can streamline our operations in different parts of the company to ensure we deliver the world-class creativity and innovation that our fans value and expect from Disney,” D’Amaro wrote in his memo. “Given the rapid pace of our industries, this requires us to continually evaluate how to foster a more agile and technologically enabled workforce to meet the needs of tomorrow. As a result, we will eliminate roles in some parts of the company and have begun notifying affected employees.”
D’Amaro was named Disney’s next CEO in February, officially succeeding Bob Iger last month (Iger remains on the company’s board of directors through the end of this year). Dana Walden has been promoted to president and chief creative officer, unifying the company’s creative businesses.
In fact, this “One Disney” ethos appears to be at the center of D’Amaro’s forward-looking strategy for the company.
“Our greatest advantage is not just one business, but how we bring our global businesses together,” the new CEO told employees on his first day on the job. “When our teams are aligned and working in a connected way, we can build on our strengths, reach people where they are, and deepen their relationship with Disney.”
D’Amaro’s strategic priorities have yet to be clarified, although sources said engagement remains his main focus.
You can read D’Amaro’s memo to employees below.
Dear fellow employees and cast members,
We’ve seen a great deal of change over the past few years, both at the company and across our industries. Because I know firsthand how uncertain these moments can be, I want to be open about some of the difficult news that will break this week.
In January, we announced our unified enterprise and brand marketing organization, designed to serve consumers in a more connected way. Over the past few months, we’ve looked at ways we can streamline our operations in different parts of the company to ensure we deliver the world-class creativity and innovation that our fans value and expect from Disney. Given the rapid pace of our industries, this requires us to continually evaluate how to foster a more flexible, technology-enabled workforce to meet the needs of tomorrow. As a result, we will be eliminating roles in some parts of the company and have begun notifying affected employees.
I know this is difficult. Those who are leaving us have done meaningful work here and care deeply about this company. These decisions do not reflect their contributions or the overall strength of the company. Rather, it reflects our ongoing evaluation of how we can more effectively manage our resources and reinvest in our business.
Compassion and respect remain at the heart of our company. 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.
Despite these difficult decisions, I remain optimistic about the direction we are headed as a company. I am extremely grateful for all of your contributions and for the dedication, professionalism and care you bring to your work every day. Even in the tough moments, you continue to show what makes Disney so special.
Josh
