The Walt Disney Co. began a round of layoffs Tuesday that is expected to eliminate 1,000 jobs across several divisions.
The reductions affect Disney’s television and film studios, ESPN, product and technology, corporate functions, and marketing, the person said. Disney had about 230,000 employees at the end of last year. Its theme parks, resorts, and cruise businesses have so far avoided most of the cuts.
Chief Executive Josh D’Amaro told employees in a note Tuesday morning that the company had begun notifying affected workers.
The move followed Disney’s January announcement that it would consolidate its marketing division, though the layoffs extended beyond that unit. Disney’s traditional television business has been under pressure as consumers shift to streaming services, which have lower profit margins and more variable subscriber bases.
The cost-cutting was one of the first major steps since D’Amaro became chief executive last month. After taking the role, he told employees he wanted Disney’s film and television studios, tourism division, streaming services, and sports programming to operate as “one Disney.”
Disney has been centralizing operations this year, including combining marketing for entertainment, sports, and experiences into one division reporting to Chief Marketing Officer Asad Ayaz.
Disney was among several media companies reducing headcount. Sony Pictures Entertainment said last week it planned to cut hundreds of jobs worldwide. Paramount Skydance has eliminated more than 2,000 jobs since David Ellison’s takeover, and Amazon and Netflix have also cut positions.
Disney shares traded around $102.40 on Tuesday. “I remain optimistic about where we’re headed as a company,” D’Amaro said. He added, “Compassion and respect remain at the heart of our company.”