Disney Plans Workforce Reductions as CEO Josh D’Amaro Navigates Early Strategic Hurdles
Less than a month after taking the helm as Chief Executive Officer of The Walt Disney Company on March 18, 2026, Josh D’Amaro is already implementing significant structural changes. Reports indicate the company is planning its first round of workforce reductions under D’Amaro’s leadership, coinciding with a period of strategic volatility regarding the company’s AI and gaming partnerships.
- Workforce Cuts: Disney plans to lay off up to 1,000 employees in its first round of cuts under CEO Josh D’Amaro.
- Strategic Pivot: D’Amaro is pushing for a “One Disney” approach to create a more connected and immersive consumer experience.
- Partnership Failures: A $1 billion partnership with OpenAI dissolved after the tech company shut down its Sora video generator.
- Financial Footprint: D’Amaro previously led Disney Experiences, which generated $36 billion in annual revenue in FY2025.
First Round of Layoffs Under Novel Leadership
According to reports from the Wall Street Journal and Deadline, Disney is planning to cut up to 1,000 jobs in the coming weeks. These layoffs mark the first major workforce reduction since Josh D’Amaro succeeded Bob Iger as CEO. While the company has not detailed the specific departments affected, the move comes as D’Amaro attempts to steady the organization and streamline operations to align with his new strategic vision.
The “One Disney” Vision and Strategic Challenges
D’Amaro entered the “corner office” with a pledge to consolidate Disney’s vast intellectual property—spanning movies, games and physical experiences—under a single, unified roof. His goal is to deliver a personalized and immersive experience for consumers, effectively blending human creativity with cutting-edge technology.
The OpenAI “Rug-Pull”
Despite this vision, D’Amaro’s debut has been marred by the collapse of key external partnerships. A watershed $1 billion, three-year deal with OpenAI ended abruptly when OpenAI decided to shut down its Sora video generator app to contain spending ahead of a potential IPO. This partnership was intended to bring 200 Disney characters from brands like Marvel and Star Wars to life via AI-generated short-form videos on Disney+. Disney executives reportedly learned of the shutdown just 30 minutes after meeting with OpenAI to discuss the tool’s future, a move described by sources as a “big rug-pull.”
Gaming and Immersive Investments
While the AI partnership dissolved, D’Amaro remains the chief architect of Disney’s aggressive push into gaming. This includes a $1.5 billion investment in Epic, announced in 2024, which provided Disney with a significant equity stake and serves as a cornerstone for his immersive entertainment strategy.
From Disney Experiences to the CEO Suite
Josh D’Amaro is a 27-year veteran of the Walt Disney Company, having spent the bulk of his career specializing in the resorts sector. Before becoming CEO, he served as the Chairman of Disney Experiences, the company’s largest and fastest-growing segment, which saw $36 billion in annual revenue in FY2025.
His previous leadership roles include serving as President of Walt Disney World (2019–2020) and President of Disneyland Park (2018–2019). His tenure at Disney Experiences was defined by the largest expansion in the segment’s history, focusing on new cruise ships, themed lands, and attractions designed to redefine the guest experience.
Looking Ahead
As Disney moves forward with its planned layoffs, the market will be watching to see if D’Amaro can successfully pivot from the “headaches” of failed AI partnerships to the realization of his “One Disney” immersive ecosystem. The ability to integrate the Epic Games investment while managing a leaner workforce will be critical to Disney’s growth in this new era of innovation.
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