The Walt Disney Company is preparing to eliminate up to 1,000 positions as it navigates a period of significant leadership transition and strategic realignment. The planned workforce reductions come as the entertainment giant grapples with rising operational costs and a streaming sector that has become less profitable, according to reports from Milano Finanza and Il Sole 24 ORE.
The layoffs are unfolding shortly after the appointment of Josh D’Amaro as the company’s new CEO. D’Amaro, previously the chairman of Disney Experiences, officially stepped into the role on March 18, 2026. His predecessor, Bob Iger, continues to support the transition as a Senior Advisor and board member until his scheduled retirement on December 31, 2026. Industry observers note that these cuts, detailed by Sky TG24 and Investing.com, reflect a broader effort to streamline operations under D’Amaro’s new leadership.
Adding to the complexity of the restructuring is the company’s shifting approach to emerging technology. While QuiFinanza suggests that AI and collaborations with platforms like Fortnite are factors in the workforce risk, Disney has fundamentally pivoted its AI strategy. Under D’Amaro, the company has officially backed out of a $1 billion deal with OpenAI, a partnership previously struck by Bob Iger to integrate characters from Pixar, Marvel, and Star Wars into the AI video tool, Sora.
The exit from the OpenAI agreement coincided with the shutdown of Sora itself. This strategic retreat follows intense social media backlash regarding Disney’s use of AI for artwork and theme park announcements.
Despite the deal’s collapse, CEO Josh D’Amaro maintains a nuanced view of the technology. During an interview on “ABC World News Tonight With David Muir,” D’Amaro emphasized that while AI is “supercharging” creatives, it will not replace human ingenuity. “The reason this company is so special is because of how creative we are, and the human beings that are generating that creativity,” D’Amaro stated. “In my mind, that never gets replaced.”
This shift in direction highlights the tension between leveraging cutting-edge technology and preserving the human-led creativity that defines the Disney brand. As the company manages its cost structure and streamlines its workforce, the focus appears to be shifting toward a model where technology intersects with human talent rather than substituting it.
