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.
Disney consolidated its marketing organization in January, bringing entertainment, experiences, and sports under one CMO, Asad Ayaz.
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.
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.
This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.
You've read 0 of 2 free articles this month.
685 Third Avenue21st FloorNew York, NY 100171-800-405-0844
1-800-405-0844[email protected]