The Walt Disney Company is reportedly preparing for a new phase of cost-cutting measures that could include up to 1,000 job reductions. These planned layoffs are expected to primarily affect Disney’s marketing division, according to individuals familiar with the situation.
This initiative follows Josh D’Amaro’s appointment as CEO in mid-March. The marketing department recently underwent a consolidation under Asad Ayaz, who assumed the role of chief marketing and brand officer in January. In his newly created position, Mr. Ayaz reports to both Mr. D’Amaro and Dana Walden, Disney’s president and chief creative officer. He is responsible for overseeing marketing efforts across all of Disney’s major segments, including entertainment, experiences, and sports. This unification marks the first instance where all of the company’s marketing units have been brought under a single leadership.
The restructuring of the marketing department itself took place in January, while Bob Iger was still serving as CEO. Shortly thereafter, Disney announced Mr. D’Amaro would assume the top executive role, a long-anticipated transition within the company. Mr. D’Amaro, who previously chaired Disney Experiences, succeeded Mr. Iger following a period characterized by leadership uncertainty, a succession race, and significant business reorganization efforts at the media and theme park conglomerate.
These prospective job cuts represent a continuation of broader financial restructuring efforts at Disney. In February 2023, the company had previously outlined extensive plans to overhaul its corporate structure, aiming for $5.5 billion in cost reductions and the elimination of 7,000 positions from its global workforce.
Bob Iger, who returned as CEO in late 2022, initiated these earlier turnaround efforts after the company faced declining stock performance and missed earnings projections. On his first official day as CEO in March, Mr. D’Amaro acknowledged Mr. Iger’s significant contributions to stabilizing the company. He noted that Mr. Iger’s return aimed to fortify the business, reignite creativity, improve studio performance, build a profitable streaming service, transform ESPN, and boost parks and experiences, ultimately laying the groundwork for long-term growth.
The company’s stock experienced a slight dip in afternoon trading on Thursday following reports of the impending layoffs.
Source: Original
