‘Layoffs Are Coming’: Disney Signals Major Workforce Cuts, Warns Employees of ‘Hard Choices’ Ahead

Disney is preparing for another phase of workforce reductions, with the company’s chief legal and global affairs officer warning employees that significant organizational changes are ahead. In a memo to staff, Horacio Gutierrez indicated that employees should expect “hard choices” and a “much smaller organization” as Disney continues its cost-reduction efforts.

The memo did not explicitly use the word “layoffs,” according to Deadline, but its message comes as Disney has already carried out multiple rounds of job cuts this year and has told employees and investors that further reductions are part of its broader restructuring. Expedia Group Layoffs: Travel Tech Giant Cuts 58 Washington State Jobs at Seattle Campus.

Disney Legal Chief Warns of Major Changes

Gutierrez, who oversees Disney’s Legal and Global Affairs operation, told employees that the organization is entering another period of change. The warning comes amid a broader effort by CEO Josh D’Amaro to simplify Disney’s structure, reduce costs and redirect resources toward areas the company considers important for future growth.

The latest memo adds to growing indications that the restructuring will extend beyond the layoffs already announced this year. Deadline reported that Gutierrez described a future organization that would be substantially smaller and told staff that difficult decisions were coming.

Disney Has Already Cut Thousands of Jobs

The latest warning follows several rounds of workforce reductions in 2026. Disney eliminated about 1,000 positions in April, with cuts affecting marketing, studios, television, ESPN, product and technology and corporate functions. The layoffs were part of D’Amaro’s effort to streamline operations after he became CEO. Oracle Layoffs: Leaked Doc Reveals 546 America Cloud Layoffs; Middle Managers and Workers Above 40 Heavily Affected.

In July, Disney carried out another round of cuts affecting several hundred employees. Pixar and National Geographic were among the businesses affected, while ESPN and certain corporate functions also saw reductions. The company had already undergone major workforce reductions during the previous restructuring under former CEO Bob Iger. Disney announced plans in 2023 to eliminate 7,000 jobs as part of a broader effort to reduce costs by $5.5 billion.

Early Retirement Offers Added to Cost-Cutting Effort

Disney also introduced a Voluntary Early Retirement Offer for eligible veteran executives in August. The program was offered to qualifying U.S.-based employees at the director level and above, providing an enhanced retirement package for those who chose to leave the company voluntarily. The initiative was presented as another component of Disney’s efforts to reduce costs while continuing to invest in content, technology and experiences.

At the time, Disney said involuntary staff reductions had already begun in some areas and that the restructuring process was continuing. Disney CEO D’Amaro and CFO Hugh Johnston also told investors in August that the company remained focused on reducing costs and was evaluating additional measures.

Disney Pushes ‘One Disney’ Strategy

The workforce reductions are taking place alongside a broader reorganization of Disney's businesses. D’Amaro has emphasized a more integrated “One Disney” approach, with the company consolidating functions that previously operated separately. Marketing was brought together under a unified enterprise structure earlier this year as part of an effort to eliminate duplication and improve coordination.

Disney has also recently reshaped its streaming and technology leadership. Adam Smith was appointed to lead Disney’s direct-to-consumer operations, while Karandeep Anand was named the company’s first chief technology officer. Anand is responsible for areas including enterprise technology, infrastructure, data and AI platforms, product and engineering.

Technology and AI Become Bigger Focus

Disney’s latest restructuring is also putting greater emphasis on technology and artificial intelligence. The company recently posted a role for a director of AI enablement and legal engineering within its legal organization. The position focuses on AI-enabled workflow modernization, automation and technology-driven improvements to legal operations. The developments suggest that Disney is attempting to reorganize its workforce around newer technology and operating models while reducing duplication across its large corporate structure.

More Disney Layoffs Could Follow

The latest warning from Disney’s legal chief does not provide a specific number of positions that could be eliminated or a timeline for additional layoffs. However, it signals that the company’s workforce restructuring is continuing after multiple rounds of cuts in 2026. Disney's leadership has repeatedly framed the changes around cost reduction, operational efficiency and redirecting investment toward content, technology and experiences.

For employees, Gutierrez’s warning of a “much smaller organization” indicates that further changes may extend beyond the reductions already announced this year. The exact scope of the next phase remains unclear.

(The above story first appeared on LatestLY on Sep 25, 2026 08:43 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).