Key Highlights
- The entertainment company is set to eliminate roughly 1,000 positions in upcoming weeks under CEO Josh D’Amaro’s leadership
- The marketing department, recently unified under one executive, will bear the brunt of workforce reductions
- More than 8,000 employees have been let go since Bob Iger’s return to the chief executive role in 2022
- Prior restructuring initiatives delivered cost savings reaching $7.5 billion for the organization
- Shares of DIS have declined 12.8% this year, finishing Wednesday’s session at $99.18
The Walt Disney Company is preparing to reduce its workforce by approximately 1,000 employees over the next several weeks. This initiative represents another phase in the ongoing cost-management strategy led by Josh D’Amaro, who assumed the CEO position from Bob Iger at the beginning of this year.
The majority of these workforce reductions will impact the company’s marketing operations, which underwent significant reorganization in January. At that time, marketing functions spanning entertainment properties, experiential divisions, and sports content were centralized under Chief Marketing Officer Asad Ayaz.
According to internal sources, D’Amaro’s efficiency initiative has been designated Project Imagine within the organization. This program aims to enhance cross-departmental coordination and streamline operations. The company has declined to provide official confirmation regarding program details.
These workforce adjustments weren’t conceived recently. Industry reports indicate the reduction strategy was already in development prior to D’Amaro’s formal appointment to the top executive position.
Disney maintained approximately 230,000 employees at the conclusion of its 2025 fiscal year. The anticipated 1,000-person reduction constitutes a modest fraction of the overall employee base.
Familiar Territory for the Media Conglomerate
This isn’t the first significant workforce adjustment for the entertainment powerhouse. Following Bob Iger’s comeback as chief executive in 2022, the organization eliminated over 8,000 roles. Those reductions primarily affected the entertainment segment, ESPN operations, and corporate divisions.
The earlier organizational overhaul generated savings totaling $7.5 billion — exceeding initial projections. During this transformation period, the theme park properties and cruise operations maintained strong performance.
Disney continues navigating challenging conditions within the entertainment sector. The decline of traditional cable television subscriptions has impacted linear TV revenue streams. Streaming platform profitability remains constrained. Theatrical release performance has weakened. Competing platforms including Amazon Prime and YouTube continue capturing larger audience shares.
Sony Pictures similarly revealed plans this week to eliminate hundreds of positions, reflecting widespread industry headwinds.
Wall Street Perspective
Notwithstanding these obstacles, Wall Street maintains an optimistic outlook on DIS shares. According to TipRanks data, the stock holds a Strong Buy consensus recommendation, supported by 18 Buy ratings alongside three Hold ratings.
The consensus price objective stands at $132.11, suggesting approximately 33% appreciation potential from present trading levels.
DIS shares have retreated 12.8% since the year began. The stock reached $115.88 in January before experiencing a pullback. Additional downward pressure followed February’s earnings announcement.
Wednesday’s trading concluded with shares at $99.18, representing a 3.55% daily increase.
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