Disney CEO Josh D’Amaro Announces Layoffs Within First Month

The Walt Disney Co. Began eliminating approximately 1,000 positions on Tuesday, April 14, 2026, as part of a streamlining initiative led by CEO Josh D’Amaro. The cuts affect several divisions, including the company’s studios, television businesses, ESPN, product and technology, and specific corporate functions.

The layoffs follow a restructuring announced in January 2026, which created a unified marketing and brand organization under Chief Marketing and Brand Officer Asad Ayaz. This new structure was designed to consolidate marketing efforts across Disney’s films, TV, ESPN, streaming, and theme parks to eliminate duplication and better serve consumers.

Josh D’Amaro, who was named as Bob Iger’s successor in February 2026 and officially took over the CEO role last month, communicated the decision to staff via a memo. D’Amaro stated that the company must constantly assess how to maintain a more agile and technologically-enabled workforce to keep pace with the rapid changes in the entertainment industry.

Corporate Restructuring and Strategic Priorities

According to the company, the layoffs are intended to streamline operations to ensure the delivery of creativity and innovation. D’Amaro noted that the decisions are based on a continual evaluation of how to manage resources and reinvest in the company’s businesses, rather than a reflection of the overall strength of the organization.

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. 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. We will be eliminating roles in some parts of the company and have begun notifying impacted employees.

Josh D’Amaro, Disney CEO

The current round of cuts is described as more moderate than the multiple rounds of layoffs overseen by Bob Iger following his return to the CEO post in 2022. While Iger has stepped down as CEO, he remains on the company’s board through the end of 2026. Dana Walden has been elevated to president and chief creative officer to unify the company’s creative businesses.

Market Reaction and Financial Context

Following the announcement of the layoffs on April 14, 2026, Disney shares rose 1.6%. During the same period, the S&P 500 climbed 1.1%. The stock gained momentum specifically after the news of the workforce reductions became public.

Disney’s stock has increased 21% over the past year. However, the company’s valuation remains lower than it was a decade ago and has decreased by approximately 45% over the last five years. These cuts mirror a broader trend in the media sector, with other major companies such as Sony and CBS News also implementing employee reductions.

Operational Challenges Under New Leadership

The layoffs represent one of the first major decisions for D’Amaro in his first month as CEO, a period marked by several other corporate challenges. Disney recently saw the collapse of a partnership with OpenAI after the AI firm wound down Sora, its video generation app. Disney had intended to use user-generated AI videos to increase engagement on Disney+.

Further complications occurred shortly after D’Amaro’s appointment when ABC shelved a highly anticipated season of The Bachelorette due to controversy surrounding star Taylor Frankie Paul.

In his memo, D’Amaro acknowledged the uncertainty these changes bring and stated that the company’s priority is to support impacted employees with resources and guidance. He expressed continued optimism regarding the company’s trajectory despite the difficult nature of the workforce reductions.