Disney CEO Josh D’Amaro just told employees that the Mouse House is laying off staffers less than a month into his tenure.
The cuts come after Disney unified its enterprise marketing and brand teams earlier this year, D’Amaro said in a Tuesday morning memo obtained by Business Insider.
“Those that will be leaving us have done meaningful work here and care deeply about this company,” D’Amaro said in the memo. “These decisions are not a reflection of their contributions, or of the overall strength of the company.”
To that point, D’Amaro expressed confidence in Disney’s trajectory: “Despite these difficult decisions, I remain optimistic about where we’re headed as a company.”
Disney shares rose 1.6% on Tuesday as the S&P 500 climbed 1.1%, and the stock gained steam after news of the layoffs broke.
Disney’s stock is up 21% over the past year, though it’s lower than it was a decade ago and has lost about 45% of its value over the past five years.
Other major media companies have recently cut employees, including Sony and CBS News.
Layoffs are the latest challenge for D’Amaro in what’s been an eventful first month.
Disney’s OpenAI partnership fell apart after the AI giant wound down its video generation app, Sora. The Mouse House had been planning to use user-generated AI videos to jump-start engagement on Disney+.
Shortly after D’Amaro took over for Bob Iger, Disney-owned ABC shelved its highly anticipated season of “The Bachelorette” after controversy around star Taylor Frankie Paul.
Read the full memo from D’Amaro here:
Dear Fellow Employees & Cast Members, We have experienced a great deal of change these last few years, both at the company and across our industries. Knowing firsthand how these moments can bring uncertainty, I want to be open about some difficult news that will be communicated this week. In January, we announced our unified enterprise marketing and brand organization, designed to serve consumers in an even more connected way. Over the past several months, we have looked at ways in which we can streamline our operations in various parts of the company to ensure we deliver the world-class creativity and innovation our fans value and expect from Disney. Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically-enabled workforce to meet tomorrow’s needs. As a result, we will be eliminating roles in some parts of the company and have begun notifying impacted employees. I know this is hard. Those that will be leaving us have done meaningful work here and care deeply about this company. These decisions are not a reflection of their contributions, or of the overall strength of the company. Rather, they reflect our continual evaluation of how to more effectively manage our resources and reinvest in our businesses. Compassion and respect remain at the heart of our company. As we move forward through this transition, our priority is to support those impacted and help each person navigate what comes next with resources, guidance, and direct support. Despite these difficult decisions, I remain optimistic about where we’re headed as a company. I’m deeply grateful for all of your contributions and for the dedication, professionalism, and care you bring to your work each day. Even in challenging moments, you continue to demonstrate what makes Disney so special. Josh
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