Disney rethinks marketing spend, weighs 1,000 layoffs amid streaming rivalry

The news: Disney is weighing a major round of layoffs under new CEO Josh D’Amaro, potentially cutting up to 1,000 roles in the coming weeks, per The Wall Street Journal. Many of the reductions are expected to hit marketing.

  • The cuts would mark an initial, major move under D’Amaro’s tenure, though Disney says the plans were in place before he took over as CEO last month.
  • Marketing teams appear to be a primary target, showing a shift in how Disney structures and funds the division.

Disney consolidated its marketing organization in January, bringing entertainment, experiences, and sports under one CMO, Asad Ayaz.

  • The reorganization centralized marketing for the first time, and Ayaz is now tasked with unifying the group.
  • The potential layoffs align with a broader cost-cutting effort, code-named Project Imagine.

Zooming out: These layoffs could help reallocate spending toward digital businesses that Disney sees as future growth drivers.

Disney is also trying to adjust to streaming profits well below what it previously made on linear TV, per The Journal, as well as growing competition from companies like Amazon and YouTube.

  • 4.9% of US TV viewing time went to Disney+ in January, per Nielsen, trailing YouTube’s 12.5%.
  • Disney+ ranked as the No. 6 US streaming TV platform ranked by ad spending in 2025, per MediaRadar. Amazon came in second.

Why it matters: The restructuring marks a change in how Disney prioritizes growth and efficiency across its media business. The company recently promoted a suite of AI-powered, automated ad tools, which could be contributing to marketing roles being targeted for cuts. Disney is communicating that efficiency is an immediate priority as it recalibrates spending.

The move also reflects a broader industry reality that media companies are under pressure to do more with less. Consolidated marketing teams could be seen as a way to reduce overhead.

Implications for Disney: A leaner, more centralized marketing organization might help the company reduce costs. However, the downside could be short-term savings at the expense of long-term growth, if reduced marketing investment slows streaming audience acquisition or if institutional knowledge on teams tied to IP and audiences is eroded.

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