Disney continues to analyze and adjust its businesses and improve efficiency under new Disney CEO Josh D’Amaro. As the company evolves to face a new generation of business, technology, and consumers, it has leaned into utilizing more technology, including AI. This has also led to cuts across the company. The newest round of layoffs his the Disney Experiences segment of the company. This segment includes Disney Parks, Disney Cruise Line, Aulani, and Walt Disney Imagineering. The Los Angeles Times is reporting that over 100 roles were eliminated this week. It is possible as many as 200 people were let go, the paper said.
The impacted employees were all notified by the end of the day on Wednesday. A person who was familiar with the matter shared with the LA Times that the cuts followed a regular review of the division’s priorities, investments, and project timelines. Disney declined to comment to the outlet.
It appears that a large part of these layoffs impacted Walt Disney Imagineering in Glendale. Specifically, these layoffs hit those working on Shanghai and Abu Dhabi projects. It does not appear that this will change the timeline for the Abu Dhabi project, however. It is unknown what exactly the impact on the future of Shanghai Disney Resort is.
These layoffs come after cuts in Disney’s HR and technology teams. Early retirement was also offered recently to longtime Disney executives as well. Looking forward, Disney Entertainment Television is expected to be restructured under its new leader, Debra OConnell. Disney’s legal department is also set to be transformed under Chief Legal and Global Affairs Officer Horacio Gutierrez, who sent an email to his teams warning of “tough choices” and the division becoming “a much smaller organization.”
Backing out to the 30,000-foot view, as of the end of fiscal 2025, The Walt Disney Company employed 231,000 people. 172,000 of these employees were in the United States. 59,000 were found elsewhere. The theme parks and resorts make up a large part of those numbers. To put it into context, 200 people represent less than one-tenth of one percent of the total Disney workforce (roughly 1 out of every 1,155 workers).
As Disney navigates a new environment that includes new technologies, including AI, there will undoubtedly be more changes as the company seeks to not just survive, but thrive. The leadership at The Walt Disney Company will continue to have to seek out that delicate balance of creating a healthy business, taking care of its employees, and providing Disney magic to its consumers around the globe. If the balance is found, the future of Disney will be bright. If one of these things isn’t balanced right, it could cause major problems for the company that is now over a century old.
